How April Can Be The Cruelest Month For Some Commodities

April is the cruelest month / Breeding lilacs out of the dead land, / Mixing memory and desire, / Stirring dull roots with spring rain.

In the commodities business, April (and October) are the shoulder months, in which weather is not that much of a factor in commodities. However,  they can be full of surprises and this April's cold spell is certainly one unusual month. 

What may the cold April imply for commodities going forward? Typically, a cold April results in some hot, dry summer weather for grain and natural gas markets. While this is not written in stone, I think that La Nina could hold on longer than other weather forecasters have suggested. If so, this will have an overall longer-term bullish impact on many commodities.

Finally, just for fun, If you want to hear Eliot read the entire 25-minute poem, just “google” it.  However, I prefer the April philosophy in Simon and Garfunkel’s “April Come She Will”. This is less than 2 minutes long and is hypnotic. Listen here

 

 

 

 

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