Quote: "For soybeans, if the experts are correct and the coronavirus subsides with spring weather, the narrative of China needing to return its soymeal imports back to 94.0 million tons, and its gross domestic product returning, protein consumption returns to trend growth, the Chicago trader says."
"Corvid-19 subsides with spring weather"? That's just plain wishful thinking. "China needing to return its soy (meal?) imports back to 94 million tons"? Maybe, but given the current economic situation and increased Brazil production, why back to 94 and why should it be US beans? Historically, once we lost our wheat market in the 1980's, we never got it back.
I hate to say I told you so, but three years ago, when I first began to warn of what would happen(not here) if we went to war with China, I repeatedly said this would happen and in the main, I haven't been wrong.
You see, economies are fragile things that need to be carefully cultivated and protected. You don't unnecessarily impose shocks because you never know when a real black swan shock will come.
And Mike, you didn't mention the follow-on effect of reduced gasoline consumption (due to quarantine, etc) leading to reduced ethanol blending and less corn grind.
