Markets are mixed this morning with corn off 2 and soybeans up 5.
Traders will be watching to see if China follows through with their pledge to open their markets to US Ag goods on February 15th as stipulated in the Phase 1 trade deal. Treasury Secretary Muchin has indicated that the implementation of the deal has slowed due to the coronavirus.
A surge in confirmed cases of coronavirus after the province at the epicenter of the outbreak revised its method for counting infections has the pros taking a cautious approach early in the trading session. Officials there added nearly 15,000 cases to their latest estimates of infections and raised deaths by 242 to 1,367 total (2.2% mortality rate). The additions raised the total number of people infected in Hubei by 45% to 48,206. The global tally increased to about 60,000. While disturbing, the jump is actually due to old cases that were reclassified after a new group of patients were diagnosed through the use of CT imaging scans rather than previous method of nucleic acid testing kits.
South American weather models are in good agreement in calling for reduced rains over the next 10 days for Argentina. Rains are slated to begin later today and push north; however, the latest runs do not have the jet stream dropping as far south that will keep the heavier rains centered on the northern half of the country. No extreme heat is seen. Farmers in Brazil will welcome the forecasted drying trend that will help advance soybean harvest and the planting of winter corn.
Have a Safe Day!