Cold weather is affecting energy markets. After a normal to warm early December, our original winter forecast for cold weather is coming to fruition with temps in the Midwest expected to be as much as 10-15 degrees below zero the next few mornings. But will it last and what is the future for energy prices? That is only for subscribers to find out.
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Natural gas and heating oil prices have taken notice. In addition drought expanding in the Plains will have to be watched in the coming months for an explosive move in wheat prices after 5 years of a bear market. Climatech, our long range in house software program, looks at global teleconnections. These include ones such as La Nina, arctic temperatures and weather trends thousands of miles away. It has accurately predicted, months in advance the cold end to December across the U.S. Notice the average 3 month forecast for eastern Australia (wet), South American corn and soybean crops (not a drought) and west African cocoa.
Cocoa crops globally will continue to benefit. This was a main reason why, over the last year, cocoa prices have fallen more than 50%.