Now There’s A Corn ETF
soybeans
When I posted More About Food Shortages Coming, I didn’t realize that there was another way to make money with the coming food shortage other than trade commodities. Mad Hedge Fund Trader (MHFT) writing at Oil Price, reports there’s at Corn ETF (CORN) and soon there will be a wheat ETF (WEAT) and an ETF for soybeans (SOYB).
MHFT says the torrential rains in Canada and this nation’s bread basket have worsened growing conditions and have cut their harvest forecasts. Yet the damage is not just limited to North America.
Reports of shortages have started pouring in from the major producers of Brazil, Russia, China, the Ukraine, and Australia. The hidden hand of massive Chinese buying is now turning up everywhere, as they scramble to lock in supplies to feed their hungry masses.
The backwardation in the soybean meal market, where front month futures contracts trade at big premiums to the far months, speaks volumes about the demand out there.
Weekly chart of Soybean Meal
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