Today is a risk off day that could lead to many more as there appears to be serious concern over the spread of the coronavirus. Corn is down 6, wheat down 16 and soybeans are down 16 to start the day.
US equity futures tumbled alongside stocks in Europe and Asia on Monday as authorities struggled to keep the coronavirus from spreading more widely outside China. Safe havens including treasuries and gold jumped. Equity futures are pointing to declines that would have Wall Street down almost 4% since Wednesday as the deadly virus spread in countries including Italy and Iran.
The risk-off mood hardened as the epidemic spread to more than 30 countries, with South Korea reporting a jump in infections and Italy locking down an area of 50,000 people near Milan. Finance chiefs and central bankers from the largest economies met at the G-20 in Saudi Arabia over weekend and warned that they saw the virus bringing downside risks to global growth.
Governments and companies are curbing travel and trade in an attempt to contain a novel pathogen that can be transmitted by people without symptoms. Adding to the anxiety Monday was China announcing an easing of the quarantine of Wuhan, only to retract the statement hours later. Beijing did impose a total ban on the trade and consumption of wild animals, but it seems a like it’s a case of “too little, too late”.
Have a Safe Day!