The coronavirus that broke out in Wuhan, the capital of China’s Hubei province, in late January is expected to have lingering impacts for the next several months, if not longer. The number of infected people was approaching 25,000 as of early this week and almost 500 of those cases have been fatal.
U.S. agricultural commodity markets initially reacted bearishly to the virus outbreak, but fears have subsided with optimism that the Chinese will contain the virus over the next few months. Success in halting the virus’s spread will remain a top market influence in the near term.
On Feb. 4, White House economic advisor Larry Kudlow noted that agricultural shipments to and from China will likely slow until the virus is no longer a significant health concern.
“The export boom from that trade deal will take longer because of the Chinese virus, that is true,” Kudlow said on Fox Business, per Politico.