Thrawn,
Now you know what it is like trying to do my job every day. There is a saying in my line work: A known fundamental is a useless fundamental.
If you look at this drought in Aussie it is bad but the the previous worst from a crop production prespective was 1995. Currently we project the Aussie wheat crop at bout 11.5 mmt. In 1995 it was 12.5 mmt. OK, what does this mean, well once the El Nino cycle was over 1995 the Aussie wheat crop went to a record crop in 1996 and 1997. The same thing happened in the US. We had our worst wheat crop in modern history this year. The El Nino cycle brings the US a wet mild winter. If you look at the wheat crop currently in the US it is in the best shape that we have been in since 1996, which was a record crop in the US.
Basically what I am saying is that for every argument about global warming and its effects you can find data to support the other side. Currently I have access to 4 different weather services and they all use different models to try to predict what is going to happen. With the information technology that we have today I can look at realtime weather in any part of the world and try to apply that information.
I do think that there is something to be concerned about long term, for example you look at the increase in soybean acres in Brazil. The majority of those acres are coming from areas tributary to the rain forests,,, what effect will the reduction of the rain forests have on the weather in that region.
What I have to do is take all the information at my disposal and form an opinion on what I think the markets and it is very easy get into what I call information overload-
If you want to look at some interesting weather data go search what happened after MT Pinitupo (sp) erupted in the Phil. in the late 1980s.
Gotta get back to work,,,the bean market is rallying.
