# Coronavirus Fears Prompt Flight to Safety in Commodity Markets - Caixin Global

> Commodity markets fell on January 27-28, 2020 as coronavirus fears threatened Chinese demand for crude oil, soybeans, and other goods, with energy, base metals and grains down more than 1.5%. China extended its Lunar New Year holiday, and the Bloomberg Commodity Index slipped 1.1%, while gold rose as a safe haven.

- Date: 2020-01-28 · published 2020-01-28T12:00:00.000Z
- Category: disease · region China · magnitude high
- Page: https://feedsoft.ai/events/8057-coronavirus-fears-prompt-flight-to-safety-in-commodity-markets-caixin-global
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Expected drops in Chinese consumption and construction activity lower demand expectations for soybeans, grains and crude, while safe-haven flows into gold reflect broader risk aversion.

## Read by commodity

- SOY: bearish ▼
- WTI: bearish ▼
- CORN: bearish ▼
- BRENT: bearish ▼
- WHEAT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WHEAT | 2020-01-27 | 1 | -2.6% | -4.0 | Coronavirus-driven commodity selloff on Jan 27-28 hit grains including wheat via fears of weaker Chinese demand and risk-off sentiment, matching the timing of the 1-day drop. |
| BRENT | 2020-01-27 | 5 | -9.0% | -2.9 | Broad commodity selloff on Jan 27 with energy down over 1.5% shows the cross-asset flight from China demand risk that weighed on crude. |
| WTI | 2020-01-27 | 5 | -9.3% | -2.8 | Broad commodity selloff on Jan 27-28 on threatened Chinese demand included crude, showing cross-market risk-off. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2020-02-28 | [China's soy complex demand likely to fall in H1 2020 on coronavirus outbreak: Rabobank \| S&P Global](https://feedsoft.ai/events/10636-china-s-soy-complex-demand-likely-to-fall-in-h1-2020-on-coronavirus-outbreak.md) | +0.3% | -0.7% |
| SOY | 2019-04-14 | [Deadly Pig Disease to Reshape Global Soy Markets for Years - Bloomberg](https://feedsoft.ai/events/59632-deadly-pig-disease-to-reshape-global-soy-markets-for-years-bloomberg.md) | -2.0% | -11.6% |
| SOY | 2020-03-28 | [Coronavirus hits already struggling US farmers with drop in prices](https://feedsoft.ai/events/7966-coronavirus-hits-already-struggling-us-farmers-with-drop-in-prices.md) | -3.1% | -6.0% |
| SOY | 2021-03-04 | [Hog Disease Outbreak in China Triggers Surge in U.S. Prices - Caixin Global](https://feedsoft.ai/events/48271-hog-disease-outbreak-in-china-triggers-surge-in-u-s-prices-caixin-global.md) | +0.1% | +1.8% |
| SOY | 2020-02-18 | [India's poultry sales decline amid coronavirus rumors linked to chickens](https://feedsoft.ai/events/54753-india-s-poultry-sales-decline-amid-coronavirus-rumors-linked-to-chickens.md) | -2.2% | -8.1% |
| CORN | 2020-03-03 | [Farm commodities take hit from coronavirus fears](https://feedsoft.ai/events/5310-farm-commodities-take-hit-from-coronavirus-fears.md) | +1.3% | +0.6% |
| CORN | 2019-04-14 | [Deadly Pig Disease to Reshape Global Soy Markets for Years - Bloomberg](https://feedsoft.ai/events/59632-deadly-pig-disease-to-reshape-global-soy-markets-for-years-bloomberg.md) | +0.4% | -2.5% |
| CORN | 2021-06-21 | [Swine Fever Variants Lead to Mass Outbreaks Across China - Caixin Global](https://feedsoft.ai/events/46447-swine-fever-variants-lead-to-mass-outbreaks-across-china-caixin-global.md) | -3.3% | -8.0% |

## Sources

- caixinglobal.com: https://www.caixinglobal.com/2020-01-28/coronavirus-fears-prompt-flight-to-safety-in-commodity-markets-101508901.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.