Trading and natural disasters: We are in the midst of one right now!

Market Pulse: May 16, 2011

Natural disasters can be a trader’s worst nightmare or a dream come true. Knowing how to change and adjust your strategy are key to getting out of the way of natural disasters and taking advantage of them for the short-term. Let’s look at corn and the Yen.

Last week July corn opened the week at 690 and closed the week at 682. On Wednesday, there was a bearish WASDE released and corn went from an open of 708¾ to close Wednesday at 677¼. Now on May 12, I read a headline that said “Historic Mississippi River flood destroying millions of farmland acres.” Now what do you see happening to grains? Of course the dollar dropping helps, but the threat of losing millions of acres of farmland is at issue.

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