Based on China’s strong PMI numbers reported two weeks ago and the continuing uptrend in commodity prices – metals and agriculture, I think Chinese stocks are poised for further gains.  One particular company that could benefit from the high corn prices is Origin Agritech [SEED], a company that develops hybrid crop seeds.  Mosaic [MOS] and Potash [POT] have been the beneficiaries of the boom in agriculture prices so SEED should benefit as well.  SEED has a nice 10% pop last week when it was awarded a patent by the Chinese Academy of Agricultural Sciences for the Bt-gene.  I would take a small position on any pullback this week.

Tweet This Post