We have been hearing about the Coronavirus for a few weeks now. The outbreak in China and other parts of the world has caused a lot of uncertainty in the marketplace. There are some real concerns that we need to take into consideration.
Arlan Suderman is Chief Commodities Economist with International FC Stone. He says the impact of the virus varies depending on the location in China. The Chinese poultry industry has the potential of taking an adverse effect.
Suderman says with an increase in Chinese demand for commodities, there is a real advantage for American farmers if we can stay price competitive.
The big hang-up is in the currency markets. The U.S. dollar’s strength against Brazilian currencies is having an impact on our commodity pricing.
Disease outbreaks in China have really been an opportunity for American markets despite the trade discrepancies we have had with them.