US markets continue with lower prices, this week expected no better

US markets finished the previous week down, especially in wheat and soybean, and the beginning of this week should be negative again, Agritel writes.

Weekly ethanol stocks have dropped for the first time in five weeks as the production continues to fall.

"Fears to see a trade war reignited between the USA and China is raising concerns. Indeed, the US is blaming China for the spreading of the coronavirus," the report states.

Following a long weekend, as most of the European markets were closed, the week should begin in negative territory to reflect the drop of US prices in preopening and the consequence of beneficial rains in production areas, analysts say.

"The return of rains in Europe and good conditions for US corn plantings’ progression are also weighing on prices. In Argentina, soybean harvests are gaining momentum and were achieved up to 68% on last Friday," Agritel specialists comment.

Good precipitations are coming a bit late, but they will relief the hydric stress of winter crops and facilitate the quick growth of spring crops. However, in a third of the southeast of Ukraine and in Kuban (Russia), dryness is persisting, scarce precipitations have not improved a critical situation.

As a reminder, wheat prices fell on Apr. 29, in part as a result of better weather conditions in Europe.