Market expert says China is buying now
A market expert says two black swan events are impacting the markets, the crude oil war between Russia and Saudi Arabia and the coronavirus. Dan Basse from AgResource Company says there is some good news. “I’m told today that the Chinese, for the first time in about five years are buying U.S. corn. They bought a little U.S. wheat yesterday. They’re looking for things like distillers grain and also ethanol.”
Basse says the Chinese are looking for opportunities in dairy markets, but that data takes nearly 60 days to receive.
Basse says crude oil might dip into the teens, and he expects a negative gross domestic product rate for the second quarter. He says maybe the U.S. can come out of it by the fourth quarter depending on how much aid the Trump administration provides. “My hope is we’ll contain it through a lot of homestay, if you will, but if this drags on for longer than three months, that’s when the duration of this gets to be overall important.”
Basse spoke to the Professional Dairy Producers business conference Thursday.