The coronavirus (COVID-19) news has a big impact on both the stock markets and commodity markets. The stock market experienced one of its worst days in history last week.
“This idea that we could be or are in a recession is definitely a big concern for us,” says Rich Nelson, the chief strategist with Allendale.
Nelson says there are major concerns. One of them is over corn demand and pricing. He says a big chunk of that discussion is around ethanol and its price too.
“At the start of this month, these plants were losing 20 cents per gallon produced,” says Nelson. “Now, you’re looking at losses of roughly 60 to 75 cents, depending on the plant.”
Watch the clip to see Clinton Griffiths, the Farm Journal editor and AgDay anchor, discuss with Nelson.