Ag commodities dropped in Chicago due to coronavirus effects

Main agricultural products quoted in Chicago dropped yesterday even if the wheat managed to close at its highest level of the session, Agritel reports.

"Traders are puzzled between risks of an economic downturn and high wheat prices in place in the Black Sea region. Profit takings provoked by the fears of economic slowdown due to the coronavirus effects have weakened most of the commodities markets," the report reads.

As noted by the consultancy, the highest level of volatility has been recorded on the rapeseed and on the palm. In Kuala Lumpur, palm prices plunged after a long weekend. By mid-session, the palm was 180 ringgits/t (USD 44.05/t) down. Beyond a slowdown of the demand caused by sanitary risks in Asia, the degraded relations between Malaysia and India are also weighing on prices.

Previously reported that crude prices extended declines on Monday, Jan.27, dropping below USD 60 for the first time in nearly three months, as the death toll from China’s coronavirus rose and more businesses were forced to shut down, fuelling expectations of slowing oil demand.