The markets have been falling hard this week with corn off 10, soybeans off 30 and wheat off 14. Continued panic around the virus in China has traders moving money to the sidelines and safe havens. Funds are short 81k corn and 58k bean contracts. They haven’t been this short in corn since the week prior to the January WASDE report.
China has not been offloading ag imports because of the risks of spreading the virus to other nations seemed to increase the panic of traders. This has resulted in the Chinese buying less over the last 10 days due to the congestion that is going t result with all of their previous purchases arriving.
China has confirmed are rise to 9,809 cases from 7,700 yesterday. Many think, and are probably correct in that the spread of the coronavirus is under reported. Hong Kong schools will stay closed until March 2, depending on the outbreak of the coronavirus situation. Russia has reported two confirmed cases overnight. Two cases have also been reported in the UK.
The models for South American weather are adding to rainfall totals next week in Argentina. Wednesday through Friday of next week look to receive 1-3 inches of rain. Coverage amounts are expected to be 80%. This would seem like a pretty normal summer pattern, with a week or two of dryness here and there. The crop still needs to be finished, but this buys another week or two. Rain totals in Brazil will stay on the wet side in the 10-14 day forecast.
Have a Safe Day!