One of the most influential stories we have seen in the commodity market for the past several weeks is the outbreak and spread of coronavirus.
This outbreak has had a considerable impact on both commodity and equity markets around the world as the disease continues to spread. The difference between the coronavirus and other outbreaks we have seen is the higher death rate from infections.
This has impacted global travel and spending, which has direct impacts on commodity demand.
The initial reaction to coronavirus was felt in equity markets. As people quit traveling, we are seeing less spending, especially in countries where the confirmed cases are the greatest. This is especially true in China, where many travel bans and quarantines have been put in place. As a result, we have seen China’s economic indicators drop to record lows in recent weeks.
While coronavirus isn't the first global outbreak of such a virus we have seen, it may end up being...