A warm summer in 'the warmest year ever'

This summer could be a very warm, dry summer. The positions of the planets looks like those of the summer of 1988. It was then a very warm summer with disappointing harvests.

Fundamental

• meteorological magazine WEER (weather) carries the title “2010 warmest year ever” leading from research done by international meteorologists.
• In the news from 8th July: 'Veel overlast door hittegolf VS’ (A lot of inconvenience heatwave U.S.) and 'KNMI geeft code geel voor extreme hitte' (KNMI issues yellow code for extreme heat).

The price of grain in 1988
Wheat rose by 50%; soja beans 74% and maize 88%.

Price estimations for 2010
What if the '1988-effect' should occur again in 2010, what will that do with the rates? If we carry through the same percentages then: wheat could rise to 750, soja beans to 1640 (test of the highest ever rate from 2008?) and maize back to $600.

Technically they all seem buyable. Wheat set a steady bottom on the 29th June, soja beans on the 8th June and maize too on the 8th June. If you trade in futures then look to the September series. There we expect in August the greatest price increasing effect. For those of you considering to purchase mini-futures September 2010, put a stop-loss under the bottom in June: for wheat at 445, soja beans at 890 and maize at 330. For charts check out http://www.cmegroup.com/trading/commodities/.

Traders tip
We advise investors to took at a trading fund such as Robeco Agribusiness Equities D EUR shares or the RICI Enhanced Agricultural raw materials Certificate or another fund that invests in grain.

Keep the head cool
Even if it really is a hot summer. As stated in Forecast book for 2010 “Traders and farmers are advised to go long at least 2 weeks before this aspect (31st July), to buy in all grains.” and “...by the time summer has arrived one has to be very careful with going short in any sort of grain. It could be the same sort of summer as 1988.”

Here is the link to the Dutch Finance Television video: 'Short ride with maize, soja and wheat'

Warning: All our suggestions to consider trading in options and / or futures are only for those who have experience in trading these derivatives

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Disclaimer: All information provided herein is based upon Schogt Market Timing’s technical, cyclical, and geocosmic analysis, and the integration of each of these factors. It is presented with reliable intent. However, no claims for future accuracy are being made, no can projections be guaranteed. Reliance of information in this report is at the sole risk of the reader. Derivative strategies are for the aggressive trader.