Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
    
   
   
   
   
   

Agricultural News


OSU Ag Experts Weigh In On China Coronavirus Outbreak Trade Concerns

Thu, 20 Feb 2020 10:52:50 CST

OSU Ag Experts Weigh In On China Coronavirus Outbreak Trade Concerns As agricultural markets respond anxiously to China’s attempts to control its coronavirus outbreak with a countrywide quarantine, economists are urging patience.
The disruptions could turn out to be no worse than the economic equivalent of a few sniffles to international trade, Oklahoma State University experts said. Only two months since coronavirus 2019-nCoV, or COVID-19, was first identified in Wuhan, China, it is still too early for projections.

“We are in uncharted territory,” said Larry Sanders, OSU Extension agricultural economist. “It’s been said that when the United States has an economic downturn, other countries catch a cold, and vice versa. Now, our biggest trading partner has a real virus and the rest of the world is dealing with the symptoms.

“We were just getting back on our feet from the way the current administration has dealt with trade difficulties in China - primarily the tariff situation, which harmed U.S. agriculture. We finally felt the trade deal that had just been worked out would leave us in a good position for at least a couple of years,” he said. “Now, though, China’s circumstances have changed and we don’t know exactly what to expect.”

At the beginning of February while speaking at a cattle convention, U.S. Department of Agriculture Secretary Sonny Perdue verbalized that uncertainty when he said the deadly infection might well draw down developing trade deals with China. Beijing agreed to buy an additional $12.5 billion in U.S. farm products this year, but the healthcare disaster could not have been predicted, Perdue said. He counseled the need to be “understanding” without providing specific details.

Many U.S. businesses, organizations and schools have cancelled travel to China, including OSU. In a recent prepared statement, OSU University Health Services said school officials continue to monitor information from the state Department of Health and the Centers for Disease Control and Prevention. In the meantime, all university-sponsored travel plans to China have been suspended and future trips are pending direction from state and federal agencies.

OSU agricultural marketing professor Kim Anderson said the situation carries emotional undertones for local producers as well as economic weight - uncertainty heightens anxiety. He cited a recent report from Allendale Inc. that suggested possible adjustments in international trade lines.

“Grain markets remain unsettled by new cases of the coronavirus amid warnings by world health leaders that that the virus is still susceptible to spread outside of China,” Allendale’s researchers said. “Strategie Grains estimates that the EU soft wheat harvest will fall from 139.8 million tonnes to 138.6 million; they note that the reduction will be more than offset by a bumper crop in Russia barring a weather event.”

Sanders, Anderson and other OSU agricultural experts said the effects of China’s self-imposed quarantine fall into two broad economic categories: the decline in trade deals across the border and the slowdown of productivity within the border as consumers and workers are stuck at home.

“We’re seeing a lot of impact now in the meat industries, probably more so than on the crop side of agricultural trade because meat is a more perishable product,” OSU Extension livestock marketing specialist Derrell Peel said. “It certainly has had a negative impact in the futures markets for cattle and hogs. Those markets seem to have stabilized at a lower level, but we’re not going to see a quick recovery until we have a better sense of the situation.

“Is the coronavirus going to turn into a major worldwide event? It’s just too early to tell,” Peel said.

More than 70,000 people have been infected in China and the number of resulting deaths was just short of 1,800 on Monday, according to information released by China’s National Health Commission.


   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • USDA Supply and Demand Numbers Not Great According to Rich Nelson, Chief Strategist at Allendale   Thu, 09 Apr 2020 15:11:58 CDT
  • Thursday, April 9, 2020 Market Wrap-Up with Justin Lewis  Thu, 09 Apr 2020 14:56:55 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Thursday, April 9, 2020  Thu, 09 Apr 2020 14:51:49 CDT
  • Severe Drought Expands in Oklahoma Panhandle  Thu, 09 Apr 2020 14:38:57 CDT
  • NSAC Joins With More Than 750 Organizations Calling on USDA to Provide Direct Aid to Farmers Who Rely on Local and Regional Markets  Thu, 09 Apr 2020 13:52:47 CDT
  • Oklahoma Educator Receives 2020 National Ag in the Classroom Teaching Award   Thu, 09 Apr 2020 13:50:47 CDT
  • USDA Announces Loan Maturity for Marketing Assistance Loans Now Extended to 12 Months  Thu, 09 Apr 2020 13:49:25 CDT
  • John Deere Producing Protective Face Shields for Health-care Workers  Thu, 09 Apr 2020 10:49:47 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma City Farm Show KIS FUTURES, INC. Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment AFR Insurance Stillwater Milling Oklahoma Cattlemen's Association

    Our Road to Rural Prosperity sponsors!

    Banc First OPSRC ORWA TPAOO TPAOO

    Search OklahomaFarmReport.com


       
       
    © 2008-2020 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.