How COVID-19 Is Changing Nufarm’s Approach to the Ag Business

Right now, no one is quite certain what impact this new disease might have on the U.S. ag marketplace.

While the “rules” provisions of the agreement are being faithfully implemented, China undoubtedly will find it difficult to meet its purchasing commitments.

Disruptions to production would have a ripple effect on North American supplies of crop protection inputs.

The coronavirus outbreak could have the unexpected effect of helping the U.S. ensure that China sticks by its promise to purchase up to $50 billion worth of U.S. farm goods.

As agricultural markets respond anxiously to China’s attempts to control its coronavirus outbreak with a countrywide quarantine, U.S. economists are urging patience.

Agrochemical production has been steady in China at about 50% capacity, but quarantines continue to hinder the ports, trucking, and the ability to bring goods to market while outbreaks threaten other major economies.

While suffering potash producer Nutrien believes in significant improvement in the short-term, recent health outbreaks may halt any recovery.

The overall confirmed novel coronavirus pneumonia cases on the Chinese mainland had reached more than 37,000 by Saturday,

Uncertainty continues to plague financial markets, earnings projections, transportation infrastructure, and supply chains as companies look for mitigation strategies to stem disruptions.