Commodity markets have seen some historical volatility lately with crude oil, cotton, and several others seeing massive profit-taking. This is because of renewed worries about a global resurgence in COVID19-variant cases. This is causing the dollar to strengthen above some major resistance. 

The weather has been a major factor affecting coffee (JO), natural gas (UNG), corn (CORN), soybeans (SOYB), and wheat (WEAT) prices. The U.S. drought is really affecting the major spring wheat areas that also extend into Canada. Only a portion of the U.S. corn and soybean belt is having crop problems and that is why one must use certain option strategies and spreads to take advantage of grain market volatility.

This video talks more about weather is affecting the grain market and coffee. This first chart shows how wheat prices broke above resistance last week. Not only have global spring wheat weather problems grown but flooding rains in Germany and other parts of Europe threaten what was once a great wheat crop.

(Click on image to enlarge)

Video Length: 00:04:35