By Jon Scheve, Superior Feed Ingredients, LLC
Fear of the coronavirus seems to be spreading faster than the actual disease and this is impacting the grain markets.
Meat consumption uncertainty
Some are fearing people won’t want to leave home and will dine out less, resulting in less overall meat consumption. However, there are also stories of supermarkets running low on meat, as people prepare for possible extended home stays. So, the market may be overreacting to the fear of the unknown. Until more is understood about how the virus spreads, the recovery time, and the mortality rate, the market will likely select the direction that seems less risky.
Tight corn spreads
Because the markets have dropped so much and so quickly many farmers are simply not selling their grain. This has contributed to the narrowest May/July corn spread since the spring of 2013. Typically, a tight spread indicates a supply shortage where the market wants grain now instead of waiting.? Continue reading
