After Soybeans, Corn's Flaky China Market

Is corn the next soy bean?
In 2001, China opened its soybean industry to imports. Within three years, rose from near-self sufficiency to being the largest importer. Now China is starting to look abroad for corn.
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The higher revenues are sharpening the appetite of China for a better diet, ie the growing demand for corn. In the short term, increased domestic production will be difficult. In fact, China imported 1.6 million tons of corn in 2010, up 18 times from 2009. The U.S. Grains Council estimates China will import four million to five million tons this year, equivalent to 5% of world trade in maize at a time of low stocks.
However, corn bulls may be too optimistic. Corn is at a record U.S. $ 7.80 per bushel in Chicago, partly because of its use to produce ethanol in the U.S. linking to high oil prices. World prices, therefore, are 23% higher than in China. That price difference discourages imports. Is unlikely to increase significantly until closing gap could happen if, for example, oil prices cool or South American crops are larger than expected.
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Politics is another wild card. Beijing has been reluctant to permit the marketing of genetically modified seeds. However, its adoption could help China to increase its corn yield of 5.3 tons per hectare to 9.6 tons in the U.S. enjoyedIf Beijing supports GM foods, and the Chinese public can be persuaded to eat, they can restrict imports.
High international prices in the short term and options for increasing yields in the long term, corn is not yet in the same category as soybeans. An increase in imports is not in doubt. Its scope and timing are.

(Source: http://online.wsj.com/article/SB10001424052748703521304576278883976353332.html)