Grain and oilseed markets are lower due to the economic turmoil caused by the pandemic but the descent pales in comparison to global stock markets.
Ken Ball is a Senior Commodity Futures Advisor with PI Financial.
"If you look at a price chart, there is still a lot of room underneath the stock market to come down. We don't know how far they are going to go. Whereas, if you look at the grain market, they are getting pretty low. They could get dragged lower but it is going to be hard to get them to collapse or go down violently like the stock markets are.
"The problem with the stock markets is just a money flow thing, there was so much money pumping into those markets that we are getting more selling now than we saw in the financial crisis 12 years ago. Actually in point moves, in the US market, we have equalled the sell-off from the financial crisis. The only thing is that in the financial crisis, that sell-off took a year and a half overall. This one happened in three weeks."
Ball says the situation appears to be improving in China.
"We have been hearing that what has been happening in China that crushers are starting to get more active and some of their ports are starting to get a few things sorted out, as far as getting ships unloaded more quickly, and some of their businesses are getting back to work. It does sound like they have turned a corner there, but it is only a slow trickle, as far as we have seen.
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