Commodity markets were in the red today (Monday), as the coronavirus outbreak weighed heavily on the world economy.
Market analysts this week continue to monitor coronavirus, as public health officials swiftly work to curb further impact, says Greg McBride, commodities broker with Allendale, Inc.
“On Friday, the government came out and suggested closures and there have been tools used by the Fed to alleviate some of the fear,” McBride said. “(That) doesn’t necessarily mean it’s gone away, but we do have a lot of school closures and dine-in/restaurant issues. They’re saying, ‘Let’s give this at least two weeks to flatten out and allow us to get back to a semblance of normal.’”
COVID-19 has not only impacted grain futures, but weekly export sales.
“Bean exports within the last week are down significantly,” McBride said. “We did get a sale of corn last week. We had about three days straight of bean sales, but overall, the weekly export (sales) report was fairly negative. We need to see if countries are going to continue to come in and buy further out deliveries or if we’re all going to be hunkered down for the next two weeks.”
McBride expects to see “a little more downside in these markets.” He makes a couple recommendations for producers to consider.
“It might be worth it, if you’re not quarantined, to deliver a little bit of cash to keep the cash flow going. It might also be worth looking into input deliveries ahead of time to make sure if this does last longer, we can still get to the fields as needed,” McBride said.
Allendale, Inc. employees will conduct business from home, until further notice. To contact a broker, call the main office at 815-578-6150. Greg McBride can be reached directly at 815-578-6165.