Prices are starting the week mixed with corn down 3 and beans up 3 this morning as Chinese traders return from the week long Lunar New Year Holiday to hammer China’s financial markets. China’s stock market opened to the worst wave of selling in years with thousands of shares falling by the daily limit after just minutes of trading. It was the first chance investors had since January 23 to trade, due to the extended Lunar New Break. The selling has not been confined to the financial markets with commodities also taking it on the chin.
The outbreak of coronavirus will likely reduce China’s ability and willingness to buy huge amounts of US ag produce, as agreed to. It has already been reported that China is seeking “flexibility” on phase one trade commitments as it focuses its resources on the control of coronavirus.
South American weather forecast features normal to above rains in Brazil and normal rainfall for Argentina. Overall conditions are positive for all of South America and 10% of the soybean crop in Brazil has now been harvested. The weather forecast is predicted to remain favorable for Argentina as harvest activity will start to pick up there as well.
Have a Safe Day!