Japan has closed all schools for a month, Romanians are facing empty supermarket shelves, and some firms in England have asked staff to work from home. The fear of coronavirus is spreading, and it’s spreading into the commodity markets.
“Traders and markets caught obviously the fear of the virus,” says Pro Farmer policy analyst Jim Wiesemeyer, “and when you trade fear, you’ll tend to have exaggerated markets, but this is one of concern until you know how long it’s going to take to get this controlled.”
While some commodities are trading on the downside, China is trying to get going again, and Wiesemeyer is still optimistic that they will fulfill the purchases outlined in the phase one trade deal with the U.S., even if those purchases end up being delayed.
“But I’m still pretty optimistic over the next year to year and a half that they’ll honour their commitments.”
Hear Wiesemeyer in conversation with RealAg Radio host Shaun Haney, on the coronavirus, market reaction, and some of the positives to the current economic situation.