January 29, 2020
After yesterday’s slight bump higher in the markets corn is off 2, wheat off 6 and soybeans are unchanged to start the day. Corn is back in the middle of its recent range and soybeans are on the lows of the year.
Traders remain concerned about the impacts of the current outbreak and have been moving money to the safe havens of the trade. (Gold) About 5,974 cases of Cononavirus have spread across China a 25% rise, with 132 reported deaths. British Airways said it will halt flights to Beijing and Shanghai, joining many other carriers. Toyota Motor Corp is halting operations in China until Feb 9th. Financial markets in China will open next Monday.
Food supplies in China are running out as people are clearing the grocery shelves, and stock piling food. China is going to have to ramp up imports in the meat supply, which was already too low. I think you can expect large purchases of US Ag goods immediately.
President Trump is going to sign USMCA into law today, and the ceremony will be held at the White House. Canada must still ratify the bill, but this is headed towards a conclusion.
Have a Safe Day!