Weather updateNatural gas remains elevated as hurricane IDA exposed the underbelly of the budding US supply shortage as the EU and Asia are drowning in an LNG supply crisis as prices for a second year in row with prices in the $30-$35 US equivalent area.
April natural gas prices in our view offer a tremendous value and the discount given to it this particular year is unjustified. Bull call spreads are advised.
With the ongoing escalation of fertilizer prices and especially Nitrogen based fertilizer prices that have been escalated from the ongoing natural gas shortage overseas and record high LNG prices along with the building US shortage of natural gas as we head into a historic long and cold Northern Hemisphere winter and these high fertilizer prices are here to stay well into next spring of 2022.
December 2022 crop corn in the $530’s offers a tremendous long-term value especially in light of what we expect to be a chaotic US planting season with delayed panting, late wintry conditions and excess snow melt flooding.
El Nino is forecasted for the 2022/23 winter