US corn futures slumped to new contract lows on Friday and wheat fell to a 3-1/2 month low, both sinking for the seventh time in eight trading sessions as a spike in new coronavirus cases beyond China fuelled fears of a pandemic.
Soyabeans also retreated, reversing course after three days of gains as equities and energy markets extended their steep selloff as the fast-spreading virus raised fears of a global recession.
The most active soyabean contract remained on pace for a small weekly gain, but corn looked poised for its steepest drop since early November while wheat was on pace for the sharpest fall in a year.
World equity and crude oil markets were headed for their worst week since the 2008 financial crisis as investors continued to fret over the risk that a coronavirus would become a pandemic and trigger a global recession.
Countries on three continents reported first cases of the coronavirus on Friday, underscoring the risk that an outbreak that began in China will cause worldwide disruption. Chicago Board of Trade May corn hit a contract low of $3.65-3/4 a bushel but was up 1/2 cent at $3.68-1/2 at 12:27 p.m. CST (1827 GMT). All corn contracts except spot March and the July 2021 contract posted fresh life-of-contract lows.
CBOT May wheat dropped 5 cents to $5.22-1/2 a bushel after earlier bottoming at $5.12-1/2, its lowest level since Nov. 18. May soyabeans fell 2-3/4 cents to $8.92-1/4 a bushel. End-of-week and end-of-month short covering limited declines, along with minimal deliveries against March futures on Friday, which is the first notice day for deliveries.
Soyabeans remain underpinned by news that Argentina suspended the registration of agricultural exports, seen as foreshadowing a rise in grain export tariffs that could reduce overseas competition for US soya.
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