Kirsten Rall updates the markets as of 2/28/2020 at 8 a.m.
Grains: Grains are trading lower in overnight trade. Soybeans are taking a hit after being the only contracts on Thursday’s trading session to end higher.
The downtrend in the markets is due to another round of coronavirus-related selling on a reported case in California.
Arlan Suderman with INTL FC Stone says the death toll in China from the virus is scaling back, with experts there saying the virus could be controlled by the end of April in the country.
Declining oil prices could drag down ethanol prices as well. Yesterday’s ethanol production/ inventory figures released by the EIA showed production and corn usage both exceeding last week’s numbers.
Wheat at soybean export sales missed projections reported by traders polled by the WSJ. Wheat sales totaled 381,800 metric tons. Soybeans totaled 339,300 metric tons according to the most recent report.
Livestock: Livestock started to trade near the noon hour after hitting bottom limits for cattle and hog futures on the board. This is the second time this week cattle futures have hit their limit down. Again, the coronavirus is the main driver for depressed market numbers on Thursday with the complex ending the day mostly in the red.
Sanderson farms say they are having issues getting poultry into China with 4 shipments over the past few weeks being diverted. Joe Sanderson says although they have all been delivered.
New sales of US pork totaled 38,900 metric tons this week. The figure is up 64% from last week, at 34% higher than the previous 4-week average. Mexico led the way higher in US exports, followed by South Korea and then China. Beef sales dropped off 28% from the prior week.