Solar flaresA NASA scientist wrote in April, "The sunspot cycle is behaving a little like the stock market. Just when you think it has hit bottom, it goes even lower." See: Deep Solar Minimum

Over the past two years, sunspot activity has dropped to its lowest point for more than a century (see vanishing sunspots prelude to global cooling?). While there has previously been discussion on this site (see http://dailyspeculations.com/wordpress/index.php?s=sunspots) the correlations were mostly directed towards stock prices. Little or no mention was made of the influence of solar activity on grain and other commodity prices as a determinant of other market behaviors — nor on the accepted 11-year cycle of solar activity.

In 1801 the German-born British astronomer William Herschel observed a correlation between wheat prices and sunspots and that less solar activity correlated with higher grain prices. Although Herschel was ridiculed, a Google on this subject revealed an intriguing contemporary study by Pustilnik and Yom Din (2003). These authors find: "direct evidence of the causal connection between wheat price bursts and solar activity."

Grain traders routinely check weather.com for short and intermediate term moisture forecasts. As the grain markets are currently correcting after a multi-week rally, I suggest that traders might also consult spaceweather.com for the latest solar winds, flares and sunspots forecast.





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