
Active Tropics But Why El Niño May Limit Major Devastating Hurricanes
Click on the video above to hear about the active tropics and the hurricane season
Click on the video above to hear about the active tropics and the hurricane season
El Niño weather conditions can have varying impacts on different commodity sectors. Here are some of the sectors typically most adversely affected during El Niño years:
Presently, this is what I have been watching for my WeatherWealth newsletter clients with various futures, ETFs and option trade ideas. Climate change is also having a major global effect.
A) Weak Indian Monsoon for oilseeds, sugar, wheat, oilseeds, rice, and possibly cotton
B) Australia’s and Argentina’s developing drought for wheat
C) China’s historical heat waves and mixed floods and droughts may have damaged some of the corn and especially cotton crops.
D) Record warm oceans creating too much rain for the West African cocoa crop where disease issues have helped prices rally 10% more in the last 2 months.
E) Wet September weather in northern Brazil could cause some harvest delays or sucrose dilution to the sugar crop and cause an early bloom for coffee that is not wanted
El Niño often disrupts the Indian Monsoon. The monsoon is very important to India’s economy and has a $3 trillion annual effect on agriculture. Presently, it is the driest since 1901 and I do not see that trend changing, following excellent July rains. This will have a “lag” effect on markets such as soybean oil, sugar, rice, wheat, and possibly cotton and be one partially bullish factor in these markets.
Click on the image below to hear my interview on July 21st about the global heat waves, my longer-term view on grains and soft commodities
Download your free complimentary issue to WeatherWealth. This report does not include specific trade ideas in ETFs, futures, and options reserved for subscribers.
Sign up for a 2-week free trial period (subscriptions) and learn about our advice on grains, coffee, sugar, natural gas, and more.
______________________________________________________________________________________________________________________________________
CLICK ABOVE TO READ ABOUT THESE TOPICS
Other than off-again, on-again news about the Ukraine-Russian grain initiative that is affecting trading, this video below talks more about El Nino, the Canada drought, and improving Midwest grain weather.