How a weakening El Niño will affect global sugar production and summer price action
(CANE) (SBN24) (SBV24) (SWQ24) (SWV24)
"How a weakening El Niño will affect global sugar production and summer price action"
by Jim Roemer - Meteorologist - Commodity Trading Advisor - Principal, Best Weather Inc. & Climate Predict - Publisher, Weather Wealth Newsletter
- Monday Evening Report: June 10, 2024
The 20% collapse in sugar prices during the last few months was almost exclusively due to the onset of a huge 2023-2024 Brazilian coffee crop, combined with the stronger U.S. dollar. Following a stellar 2023 rally on global El Niño related production issues in Thailand (#3 biggest producer) and India (#2 largest producer), a speculative “bubble” hit the market.
Currently, I am seeing weak El Niño conditions still lingering, and there is extreme heat and dryness in northern Brazil that could begin to affect the 2025 crop.
My newsletter started becoming cautiously bullish two weeks ago near the lows. Of great importance will also be the demand side of the equation and the fate of this summer’s Indian Monsoon.
I cover all Ag markets (as well as natural gas) with my “sentiment score-card” known as the BestWeather Spider; also included are long-range forecasts and trade ideas.
Will we switch to a La Niña soon? …and if so,… How might this affect global sugar production and market prices?
Please feel free to download one COMPLIMENTARY recent issue of WeatherWealth here > > > > > https://www.bestweatherinc.com/weather-wealth-sample/
Thanks for your interest in commodity weather!
Jim Roemer, Scott Mathews, and The Weather Wealth Team
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.
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.