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Early reports suggest that the devastating flash flooding and mudslides along the Nepal-Tibet border were caused by a major environmental problem. A huge section of bedrock, ice and glacier sheared from the mountain and crashed down.The fierce force at first was mistaken for an earthquake registering a seismic signal. However, the signal was caused by the avalanche itself. Scientists believe a major contributing cause of the disaster was rapid warming of that region of the Himalayas. Rising global temperatures cause melting permafrost and destabilizing of steep mountains. These conditions may, in fact, lead to more frequent large rock and ice avalanches across the world. The disaster may serve as a warning to the real threat of future global warming.
Grains Surge on War News
Grains and Beans blasted higher this week as strikes escalated between Russia and Ukraine and showed no signs of letting up. Both sides attempted to cut-off the other's export ability. Wheat prices benefitted the most with near-panic buying rising roughly 80 cents per bushel. Crude oil did not respond much and precious metals posted a counter-intuitive sharp decline.
Canadian Trade Parade
Canada moves nearly 4 million barrels of oil south daily with natural gas and refined petroleum key to US trade. Supply chains move cars, trucks, and components across the border multiple times before final assembly. Canada also supplies aluminum, steel, uranium and minerals like nickel, lithium,and graphite. Agriculturally, trade features beef, cereals, pasta, vegetable oils, baked goods, fresh produce and industrial farming supplies such as potash, all worth $40 billion dollars.
US – Canada: Heavy Levy Battle
Canadian officials have noted that retaliatory tariffs of up to 50% on 20 billion dollars of US goods are targeting specific US states in the Midwest and Northeast. On Monday, President Trump announced 50% tariffs on Canadian automotive and steel imports that would take effect on Jan. 1, 2027 unless a deal is reached between the two countries. Canada's tariffs on the US would cover 800 types of US goods and focus on states with competitive midterm elections.
CME midday prices - November Soybeans, $12.87; September Corn, $5.10; September Wheat, $7.63. Livestock per 100 pounds: October Cattle, $212.00; October Hogs, $81.95. Metals per troy ounce: December Gold, $4,512; September Silver, $66.60, September Copper per pound: $6.56. October Crude oil per barrel: ( WTI ) $83.30. September S&P futures traded at 7725.00.
Walt Breitinger is a commodity futures broker in Indiana. He can be reached at 800-411-FUTURES (3888) or www.indianafutures.com . Pinion Futures, LLC, a CFTC registered Introducing Broker and NFA Member (NFA #0284447,) is a fully owned subsidiary of Pinion Risk Management LLC. Information contained herein is believed to be reliable but cannot be guaranteed as to its accuracy or completeness. Futures and options trading involve substantial risk of loss and is not suitable for all investors.