As China looks to supply its domestic livestock industry and
expand its ability to feed the country's growing urban
population, Canada has lost the tile as the largest importer of
U.S. agricultural products. Traders can get a taste for
In 2010 China's soybean imports accounted for 25% of the U.S.
soybean crop, accounting for 60% of U.S. soybean exports.
State-owned food companies China National Cereals, Oil and
Foodstuffs Corp and China Grain Reserves Corporation agreed in
February to purchase a record 13.4 million tons of soybeans
valued around $6.7 billion.
China also imports soybeans from
Brazil and Argentina
Kirk Leeds, chief executive officer of the Iowa Soybean
Association, recently said that "We believe the growth (of US
soybean exports to China) will continue in the next few years"
and that China's demand will continue to grow and US soybeans
will take "a significant portion of a much larger market."
Iowa has seen reaped the rewards of
and food has been playing an important role in growing the
state's exports by 10% in the last couple of years. The
additional exports account for a fifth of the state's jobs in
agriculture, food processing and advanced manufacturing, said
Iowa Lieutenant Governor Kim Reynolds.
Traders can now gain exposure through the recently created
Teucrium Soybean (
) ETF, which seeks to reflect the daily changes in percentage
terms of a weighted average of the closing settlement prices for
three soybean futures contracts.
The fund invests normally in Benchmark Component Futures
Contracts or in certain circumstances, in other soybean futures
contracts trade on the CBOT or on foreign exchange.
It may also invest in exchange-traded options on soybean
futures contracts and in soybean-based swap agreements that are
cleared through the CBOT or its affiliated provider of clearing
services in furtherance of its investment objective.
SOYB is up 5.8% year to date but is still 6% depressed from
the $24.96 it opened at back in September.