US corn futures fell to contract lows on Thursday while wheat futures slumped to the lowest level in 2-1/2 months in tandem with tumbling equities and energy markets amid investor fears of the coronavirus outbreak developing into a pandemic.
Soyabeans fell to their lowest point in nine months but later recovered as soyameal prices firmed on expectations for an increase in Argentine export taxes, which could boost demand for US soya.
Grain markets, however, remain anchored by tumbling outside markets. Global stocks and oil prices were down sharply and US Treasury yields hit record lows as traders fretted over the economic impact of the virus, which has infected about 80,000 people globally and killed more than 2,700.
"Fear knows no reason. This is a knee-jerk reaction," said Jim Gerlach, president of A/C Trading. "People still have to eat, but the food commodities are getting sucked into the vacuum of a fear-based market right now."
Chicago Board of Trade (CBOT) May corn was down 6 cents at $3.68-1/2 a bushel by 12:15 p.m. CST (1815 GMT) after notching a life-of-contract low earlier in the session. Nearly all corn contracts hit fresh lows on Thursday.
CBOT May wheat fell 8 cents to $5.27-3/4 a bushel, the contract's lowest mark since Dec. 12. The contract fell through chart support at its 200-day moving average, a key technical level it has not breached since mid-November.
May soyabeans were up 4 cents at $8.96 a bushel, rebounding from an earlier drop to $8.78-1/4, the contract's lowest level since May 23, 2019.
Soyabean bounced from the lows at midmorning, led by higher soyameal futures, which jumped as traders covered short positions following a move by Argentina's Ministry of Agriculture to suspend farm export registrations. The move was seen as heralding a rise in grain export tariffs in the debt-stricken country.
However, the prospect of a record Brazilian harvest flowing onto the market in the coming weeks curbed US prices.