EL NINO

·       There is a new report out written by the New Scientist which highlights the global concern about what we can expect from El Nino

·       The current extreme El Nino is now the strongest one EVER recorded and continues to wreak havoc on weather across the planet

·       The 1997-1998 El Nino killed 20,000 people and caused almost $97 billion of damage as floods, drought, fires, cyclones, and mud slides across our planet – and 2015-2016 is expected to be even worse!

·       New Scientist points out a key measure of El Nino intensity is the warmth of water in the central Pacific.

·       In 1997 at its peak on November 26 it was 2.8 degrees Celsius above average

·       According to the latest measurements, it reached 2.8 degrees Celsius on November 4^th this year (2015) – and went on to hit 3.1 degrees Celsius above average on November 18^th

·       Keep in mind the temperatures in the central Pacific have the biggest impact on the global atmosphere circulation – therefore the biggest impacts on global weather

·       It still appears many of El Nino’s effects are yet to come

·       For example, whether it will finally bring rains to parched California – or even whether it will go TOO FAR and cause floods – isn’t yet known

·       And of even further concern is once El Nino is over – it might not be time for celebration at all, since it is LIKELY to be followed by a strong La Nina – which can cause major problems in areas which had been enjoying weather previously. (Such as our Midwest!)

·       La Ninas are also expected to be about twice as common as a result of climate change this century.

·       We continue to build positional trades into 2016 via bull spreads in corn and soybeans. Stay tuned in on our regional weather updates (daily) via our market letter.

From Bower Trading Daily Newsletter