Corn production was overestimated,according to John Stephenson,senior vice-president and portfolio manager at First Asset Investment Management.Look for higher corn and soybean prices.Corn is moving higher in the second half of the year;the U.S. is responsible for 65% of the corn trade.
The U.S. situation is extremely good for fertilizer producers.Farmers are planting so late in flooded fields.They're gonna have to refertilize-especially in the fall.
Eventually,supply will meet demand,but China looks to be an importer this year.Farmers are rushing to plant corn.
There's a very strong market for potash and nitrogen-based fertilizers.Within South America,Monsanto is doing incredibly well with its seed.China is also adopting this seed.
What happened in America in terms of the predominance of large-scale farming is also gonna happen in China,Mr.Stephenson predicts.
First Asset Investment Management is a Canadian firm that offers Toronto Stock Exchange-listed investment funds,mutual funds,principal-protected notes and flow-through limited partnerships.It has around 2.5 billion dollars under management.
PowerShares DB Agriculture Fund(DBA),PowerShares DB Commodity Fund(DBC),Monsanto(MON),Potash Corporation of Saskatchewan(POT)
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