Markets are taking a risk off approach this morning as fears grow on the spread of a new Chinese virus that is affecting global travel and trade.
Traders also seem unimpressed by China’s comments that they will secure the agreed upon Ag purchases in a competitive marketplace. This raised concerns that Beijing will not follow through as promised. Basically the trade is telling them to “put their money where their mouth is”. US corn is the cheapest in the world going out 6 to 8 weeks as Argentine prices soar due to an old crop shortage. Additionally, corn out of the Black sea has been steadily on the rise. This puts some credence into rumors of between 2 to 5 cargoes of corn being sold to China out of the PNW that had corn prices surging on Friday.
South American weather models continue to show excessive rains for fields in northeast and northern Brazil (3″ to 7″) that will slow soy harvesting and likely cause delays in the safrihna corn getting planted there. The same runs show less rain for Argentina as a drier pattern evolves across the region and spreading into southern Brazil. The dry period is not a massive concern following the recent round of showers, but will need to be monitored should it continue into February. Crop condition ratings are currently very high and could prove difficult to maintain as the season wears on should any weather hiccups emerge.
Corn is down 5 and soybeans are down 10 to start the day.
Have a Safe Day!