Rubber prices soar on flooding in Indo-Pacific

Rubber prices soar on flooding in Indo-Pacific

Rubber prices have increased more than 60% on the Tokyo Commodity Exchange since October. Rubber is not traded on an exchange in the U.S., but can impact U.S. companies that need it for their products, such as the tire and industries. China helped drive foreign futures prices higher, with greater demand of rubber for tires. Lately, car sales have increased in China due to a government tax break.

rubber, prices, commodity,

The image above shows the price of rubber (yen/kg). Credit: Tokyo Commodity Exchange

However, the main impetus for this futures rally appears to be tied to the above normal rainfall in most of the Indo-Pacific region since December. This has limited the harvest of latex from rubber trees. Southern parts of Thailand, the world’s largest rubber exporter, were most severely impacted.


Image Credit: NOAA

Here is a graphic we sent to clients about a month ago, giving them a heads up on the flooding in Vietnam Robusta areas and Thailand sugar areas. The La Nina sea surface temperature pattern lead to anomalous low level convergence and divergence zones along the equator. Changes in the wind field create an anomalous low near Vietnam, causing onshore flow of warm moist air. Above normal rainfall can occur across SE Asia in the winter months, extending the rainy season past November in Vietnam. On top of impacting rubber, this flooding caused delays to the sugar harvest in Thailand and damaged Robusta trees in Vietnam.

La Nina, Thailand, Rainfall,

Image Credit: NOAA, NCEP/NCAR

Argentina’s Billion Dollar Grain Industry May Be At Risk, Again! What Does Climatech Say?

Argentina’s Billion Dollar Grain Industry May Be At Risk, Again! What Does Climatech Say?

ROEMER—GROWING JANUARY WEATHER PROBLEMS FOR ARGENTINA CROPS; ITS NOT JUST LA NINA–TOO WET IN THE NORTH, TOO DRY IN THE SOUTH

While everyone always talks about El Nino, El Nino or La Nina, La Nina, there are other teleconnections at least as correlated with rainfall in Argentina, and for that matter, many parts of the world. The AAO has been very negative over Antarctica and the warm TSA/SAT regions around west Africa are strong signals that southern Argentina soybean and corn areas will have problems throughout January. These other teleconnections relate to ocean temperatures and what is happening with the jet stream over Antarctica.

These features (thousands of miles away) can affect weather in many parts of the globe.

Northern areas however, may continue to have too much rain lowering crop prospects for Argentina grains.

Due to client obligations, I will not be able to comment frequently with respect to other soybean areas in South American and its impact on the grain market in the weeks ahead.

JANUARY WEATHER IN ARGENTINA AND CLIMATECH—RAINFALL TENDS TO BE BELOW NORMAL IN SOUTHERN ARGENTINA (SEE TABLE TO THE RIGHT)

Why has Robusta Coffee (instant coffee) been rallying and Arabica Coffee (Brazil) Near Contract Lows?

Why has Robusta Coffee (instant coffee) been rallying and Arabica Coffee (Brazil) Near Contract Lows?

LISTEN TO AUDIO—-It is possible coffee prices could be near a low given some dryness in NE Brazil and too wet for the Vietnam Harvest

 

 

Historical Coffee Spreads between Robusta/Arabica–More flooding to Vietnam coffee may keep Robusta prices strong in the short term vs big production in Brazil hurting the NY coffee contract

Global Heating Oil Areas to Stay Warm Into Early January but Volatile U.S. Weather Pattern

Global Heating Oil Areas to Stay Warm Into Early January but Volatile U.S. Weather Pattern

After a modest rally in crude oil on the heels of lower Opec production announcements, the world is still awash in oil. While other factors over other than weather is at play, it may take major cold in Europe, the U.S. and China to shore up the flood of oil in the weeks ahead. The U.S. weather pattern is very volatile due to a changing weak La Nina; good Eurasian snow cover that usually results in blocking and colder winter risks in the U.S., versus other factors. Overall, this will make trading weather in the energy market volatile in the weeks ahead with the trend being 1-2 weeks of cold U.S. weather, warming, then cold again. It is possible that within a week or so, models may once again show a pattern change towards colder weather if the EPO and NAO/AO index becomes negative again. Models are not showing this, but the atmosphere is in a different state than it was a year ago with a lot colder weather over Eurasia and Canada

How to talk to conservatives about climate change

How to talk to conservatives about climate change

 

 

FEATURE

the week.com

Alasdair Wilkins
Brendan Smialowski/Getty Images
December 19, 2016
Nothing imperils humanity’s future like global warming, and that very fact may help explain why conservatives are generally so skeptical of climate science.

After all, conservatism first emerged as a defense of tradition against progressive change, so why would conservatives care about preserving a future they already view with suspicion? That’s the argument a recent study puts forward, and it points to a possible better way to talk about the environment with those skeptical of climate science.

Although 97 percent of climate scientists agree that the Earth is getting hotter and human activity is a primary cause, the public is far more divided. A recent Pew Research poll was just the latest of dozens of polls to demonstrate the profound partisan split on climate issues, with 70 percent of liberal Democrats saying they trusted climate scientists compared with just 15 percent of conservative Republicans. And so-called climate change deniers will soon hold pretty much all the power in the United States, with Donald Trump set to become the only head of state on the planet who rejects climate science. If ever there was a time for a renewed effort to change the minds of conservatives — if not Trump, then at least friends and family who voted him in — about climate change, the time is now.

Researchers at Germany’s University of Cologne ran a series of online surveys with a range of 200 to 300 American participants from across the political spectrum. They worked on the assumption that conservatism has historically been about preserving the traditional status quo in the face of change, whereas liberals tend to see such change as necessary to building a better tomorrow. In other words, conservatives look fondly on the past and are wary of the future, with the situation reversed for liberals. Calls for dealing with climate change that are rooted in protecting the planet for future generations might then not be persuasive to conservatives, particularly when they associate such environmental messages with liberal efforts to change society for the worse.

Are these broad generalizations? Absolutely. But broad generalizations can be useful, and the results from the surveys seem to bear out the researchers’ hypothesis. In one survey, the participants would see one of two nearly identical messages. While one talked about how “there is increasing traffic on the road, the air is becoming polluted, and land is disappearing,” the other noted how, in the past, “there was less traffic on the road, the air was clean, and there was plenty of land.” One talked about wanting to make future generations proud, while the other worried about doing right by the founding fathers.

Conservative participants consistently liked the past-focused message better than the forward-looking ones. Liberal participants somewhat preferred the future-centric messages, but they generally responded positively to pro-environmental messages of any stripe. They found that switching the focus of global warming messaging towards the past was enough to erase 77 percent of the opinion gap between liberals and conservatives.

Which Teleconnections are Key for Winter Forecast and Natural Gas Prices?

Which Teleconnections are Key for Winter Forecast and Natural Gas Prices?

The natural gas market has rallied more than 15% the last 2 weeks due to ideas of a much colder winter and more bullish EIA’s vs last year’s warm winter. We began noticing blocks in Canada 2 weeks ago, that made us adjust our forecast for colder weather and become more in the bullish camp with prices just above $3.00. What will be keys to the winter forecast? Will it warm up after 2 weeks of cold? What these blocks due (-WPO) and (-EPO) are keys. Subscribers to our service will get up to date short and long range weather forecasts, plus invaluable information gauging the psychology of these and many other markets based on the weather.

Chart below supplied by StormVista of teleconnections predicted by mid December

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