Agri Commodity Markets Monthly January 2020: Deal Signed but Virus Brings Panic

Emerging in the heady wake of the trade deal phase 1 signing, the Coronavirus currently spreading through China (and abroad) during peak consumption period has firmly acquired the market narrative. The consequent drop in crude oil – Brent went from USD 69/bbl in early January to USD 59/bbl currently – triggered an even more impressive sell-off in vegetable oils and halted the enthusiam in the ethanol complex, affecting sugar prices too. The downward pressure seems exaggerated for others, like coffee (which lost 21% so far in 2020), as China is not a large market. The focus of the market will eventually move toward Chinese procurement of US agricultural goods within the phase 1 deal.

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  • Stefan Vogel

    Global Strategist - Grains & Oilseeds; Head of Agri Commodity Markets
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  • Michael Magdovitz

    Commodity Analyst
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  • Carlos Mera

    Senior Analyst - Agri Commodity Markets
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