Monday February 3, 2020
- Coronavirus has been a consistent drag on the market – particularly soybeans as buying has ground to a halt and questions about the long term impact on demand remain unanswered
- Old crop beans attempting to bounce off over 8 month lows hit on the overnights, so far falling almost $1/bu since the end of December
- Acreage influx in 2020 could lead to a significant increase in U.S. supplies next year; even with 2019’s slightly tighter carry-out, adding another 12 million acres that did not get planted last year due to floods back into production, we will need to see a big offset in demand to keep ending stocks from rising significantly
- Crude oil is off to its worst start of a year since 1991 – falling 16% in January over concern that the coronavirus will curb travel intentions and thus lower the use of fuel
- Chinese markets just now reopening for the first time since the Lunar New Year – market absorbing the impact the coronavirus has had on the rest of the world over the past week as the disease continues to spread in China and world wide