Two commodity ETFs to soar in 2011: China to massively buy them

China announced yesterday that it will be implementing a program to buy commodities in 2011 to replenish its reserves. These are massive state reserves. Chinese reserves were severely depleted in 2011 when the government sold its stocks to combat inflation and shortages.

There are many commodity ETFs on the market, and we track them all live here.

Chen Deming, Chinese minister,. said that in particular, the Chinese said they will be buying sugar and meat. The sugar ETF is SGG (+139% since 2009).

Corn, Cotton and sugar are the reserves in worst shape in China. BAL (ETN) tracks cotton (+169% since 2009).

Of course, the price of commodities depends on the price of the US dollar as well.