Hurricane Sandy’s presence will be known for quite some time along the East Coast and Wall Street is closed for day two. Darin Newsom is the Senior Agriculture Analyst at DTN in Omaha and says the mega-storm will not have much of an impact on the agriculture commodity markets here.
Newsom says agriculture commodities moved lower Monday but that had most to do with investors not liking insecurity in the market. However, today they are back trading so the initial reaction from Monday was basically “a wash”.
Newsome says worldwide trade is a concerned with the closing of Wall Street a second day. The last time that happened was in 1888. Newsom again says the biggest risk to the markets in general is investment liquidation due to insecurity but that is short lived. He says traders get through natural disasters fairly quickly and get back to business quickly. He says there may be some pressure but it will likely be from market pressure seen prior to Hurricane Sandy’s arrival.