How a near record stratospheric warming event will affect March Commodities
“How a near record stratospheric warming event will affect March Commodities”
(Long Weekend ‘Essential Reading and Watching’ >>> what you need to know, weatherwise, commodity-wise, and otherwise)
by Jim Roemer - Meteorologist - Commodity Trading Advisor - Principal, Best Weather Inc. & Climate Predict - Publisher, Weather Wealth & Climatelligence
- Commodity Weather Market Scope
- Holiday Weekend of February 17-20 - Preparation for What's Coming
CLICK HERE >>>>>>>>> To View VIDEO
Stratospheric warming occurs some 10-20 miles up above the earth’s surface and can sometimes be linked to causing extreme global weather events. That’s right, it is not just a warming planet brought on by climate change, La Niña or El Niño, but weather events some 50,000-100,000 feet up in the atmosphere can, at times, create wild weather.
For the end of February and much of March, I expect a cold, and potentially snowy, U.S. weather pattern. This is good news for western Midwest and northern Plains grain farmers struggling from a multi-year drought, although, of course, spring wheat and corn planting do not begin for another few months.
The big weather-related moves of late were:
- The bull move in soybeans on the Argentina drought;
- A 15% rally in sugar prices, due to a delayed reaction to weather problems last summer in India, as the Indian government is not cutting off Indian sugar exports to compensate for a crop shortfall;
- Renewed concerns for the Brazil coffee crop; this time too wet; and, of course…
- The incredible 70% collapse in natural gas prices due to the warm U.S. and European winter.
The video talks about two important teleconnections that will be forming due to stratospheric warming. They are called a negative WPO index (warm block in northeast Eurasia) and a negative NAO Index (warm block near Greenland). This scenario will bring a cold and snowy March to the Midwest, cause potential harvest delays, which should be a huge Brazilian soybean crop, and lower the crop quality of northern Brazil's coffee crop.
- How does one trade these climatological idiosyncracies?
- What is our longer-term view for spring and summer markets?
Join farmers, and both expert and novice ETF and futures traders with a free trial of Weather Wealth and see how we caught most of the entire move down in natural gas and coffee earlier this winter and what’s in store, next > > >https://www.bestweatherinc.com/new-membership-options/
Thanks for your interest in commodity weather!
Warm regards,
Jim Roemer, Scott Mathews, and The Weather Wealth Team
- Please feel free to learn about Jim Roemer, our track record, and how we use weather to help traders around the world. If you have any questions, don't hesitate to drop me a line - Scott Mathews, Editor
Mr. Roemer owns Best Weather Inc., offering weather-related blogs for commodity traders and farmers. He also is a co-founder of Climate Predict, a detailed long-range global weather forecast tool. As one of the first meteorologists to become an NFA registered Commodity Trading Advisor, he has worked with major hedge funds, Midwest farmers, and individual traders for over 35 years. With a special emphasis on interpreting market psychology, coupled with his short and long-term trend forecasting in grains, softs, and the energy markets, he established a unique standing among advisors in the commodity risk management industry.
Trading futures and options involves a significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results. There is no warranty or representation that accounts following any trading program will be profitable.
On the date of publication, Jim Roemer did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
