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Veteran Advisor

Grain Markets To Ignore Ebola (for now)

While I'm praying for those folks affected and dealing with loss, my job calls for some insight into how the market psychology is measuring this horrible ebola news.

If you're wondering if the farm markets will trade the killing ebola virus, the answer seems to be no. At least for now, neither the grain markets nor the equity markets are expected to react much, according to this grain trader in Chicago. 

In his own words:

"West Africa is economically impoverished and means little to Western consumption or exports.. etc.. ..  only if you got into a pandemic situation would it be important..and that is not the case... nor do I think the equity markets are responding to this either..."

 

What is your perspective to this trader's answer and how do you see the ebola news playing out?

 

Thanks,

 

Mike

 

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3 Replies
Veteran Advisor

Re: Grain Markets To Ignore Ebola (for now)

IF there are Ebola cases in the MIdwest (Iowa, Illinois, Indiana..etc.) and things start to turn ugly I think business will slow across the board.  Prices would increase because of all the fear of contracting Ebola.  

 

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Veteran Advisor

Re: Grain Markets To Ignore Ebola (for now)

So far, 4,500 ebola deaths have been confirmed, according to the World Health Organization. And, the WHO is estimating the weekly death toll could increase to 10,000.

 

Mike

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Veteran Contributor

Re: Grain Markets To Ignore Ebola (for now)

Airline Stock through the ROOF so far this morning, I guess no affect there.....at least for the moment  

 

ALK  +3.655% 

AAL   +10.5% 

DAL  +6.89% 

LUV   +7.55%

UAL   +7.38% 

 

But this also could be due to the banner economic news (financials for example) out today as well as the drop in oil prices. Lots of inputs to consider.  

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