Chicago futures are up 10 1/2 cents at $8.4875.
After faking a bit of warming sea surface temperature anomalies in the Nino 3.4 area are heading down again, that is, La Niña is not letting go and will continue to influence weather around the world, witness the flooding in Australia and the cold and drought in China's #2 wheat growing province. Here's the most recent anomaly chart from Climate Observations:
The most recent downturn puts the anomaly at -1.8 deg. C, close to the low for this episode.
On top of that the Pacific Decadal Oscillation is firmly in the cool phase registering at -1.21 for December, this after some modestly positive numbers for the first five months of 2010.
In the U.S. drought is intensifying in Texas and into the Southeast:
The relationship between drought in the continental US and the phases of the Pacific Decadal Oscillation (PDO) and the Atlantic Multidecadal Oscillation (AMO). The most severe droughts occur when the PDO is in a negative phase, and the AMO is in a positive phase.
From McCabe (2004).
...Donald Coxe, chief strategist of Harris Investment Management and one of my favorite analysts, spoke at my recent Strategic Investment Conference. He shared a statistic that has given me pause for concern as I watch food prices shoot up all over the world.Folks, it is not getting better.
North America has experienced great weather for the last 18 consecutive years, which, combined with other improvements in agriculture, has resulted in abundant crops. According to Don, you have to go back 800 years to find a period of such favorable weather for so long a time....