US soyabean futures hit a six-week low and grain futures slumped on Friday as fears over the coronavirus spreading from China triggered broad-based selling. The US Centers for Disease Control and Prevention confirmed a second US case of the new virus was in Chicago, adding to nerves after the outbreak in China killed 26 people and infected more than 800.
The virus is expected to dent growth in China, the world's top importer of soyabeans, after months of economic worries over trade tensions with the United States. Equities and other commodities including oil and copper also weakened.
The most actively traded Chicago Board of Trade soyabean contract slid 0.9% to $9.01-1/2 a bushel by 12:24 p.m. CST (1824 GMT). The contract reached its lowest price since Dec. 12. CBOT wheat was down 1.3% at $5.72-3/4 a bushel, while corn was 1.1% lower at $3.89-1/2.
Traders continued to wait for signs of increased Chinese buying of US farm goods after Beijing pledged to significantly increase imports in an initial trade deal the countries signed last week. The agreement is meant to reduce tensions after nearly two years of a tit-for-tat tariff war.
Soyabeans are the biggest US crop export to China and the oilseed market has been particularly sensitive to developments in the trade dispute. Brazil, a rival soyabean supplier, is expected to harvest a massive crop, providing stiff competition for sales to China.
The US Department of Agriculture reported total export sales of US soyabeans in the week ended Jan. 16 were 910,700 tonnes, in line with trade expectations for 700,000 to 1.3 million tonnes. Weekly US wheat sales were 741,900 tonnes, near the high end of estimates for 300,000 to 800,000 tonnes, while corn sales reached 1 million tonnes, within expectations for 700,000 to 1.2 million tonnes.
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