A warming climate, brought on by a developing east based El Nino (very unusual after a strong El Nino 2 years ago), deforestation in NE Brazil and global warming, all point to some unusual weather events for global commodities in the months ahead. We will have more of a discussion about El Nino, next week.
One thing that traders will begin watching is the developing drought in the western Plains wheat areas. While a bit early to cry wolf, it will be important soon that consistent rains fall in this region.
Forecasts for these and other commodities, I can only furnish to my privileged client. (see top feature drought monitor map)
In an interesting article in the NY Times recently, please read about deforestation issues that are only growing worse in Brazil.
NY Times–Deforestation
