This Video by Jim Roemer talks about the grain market, Global Angular Momentum, and how weather has been partially responsible for the recent sell-off in some commodities

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My clients were advised last week this might happen in some commodities.

Atmospheric angular momentum (AAM), a measure of the rotation of the atmosphere around the Earth’s axis, is a useful quantity to investigate changes in the global atmospheric circulation, especially over the Tropics. In addition to maintaining the global energy balance, tropical circulations are also critical for maintaining the global angular momentum balance. It is the weather in the tropics that often affects, not only cocoa, sugar, and coffee but grain commodities.

When GLAAM is negative, we tend to have La Nina conditions in the Pacific. Positive, El Nino type conditions.  While there are other factors such as sea ice, etc that play a role in our climate, the switch to positive GLAAM last week helped us catch the top of the grain market for clients and call for the easing of the drought for some key North West US corn belt, soybeans, and spring wheat states.

What will happen to GLAAM in the weeks and months ahead and could things become more bullish for grains and other commodities come summer? What are our trading strategies in commodity ETFs options and futures? For that, we invite you to subscribe to one of our newsletters here