Weather affects every aspect of the economy

>c. 2004 Chris S. Orr CCM				with the forecast to predict store volume. Their
Weather affects every aspect of our lives. It				stores in southern California even give discounts
impacts our pocketbooks, our menus, our				on rainy days.
schedules and even our health.				Let me pose a question to youhow much do
We are aware of how cold weather drives up the				you think the weather affects your daily
price of natural gas and propane (just look at				schedule? Now, I don't mean being a minute late
your heating bills from this year!) and how our				to work because you had to run back in the
insurance costs are adjusted for the amount of				house and grab an umbrella, but how does the
storm damage we sustain. Changes in the				weather seriously impact your plans?
weather, either real or predicted, will affect the				Are you flying anywhere this summer? Fog,
price of everything we buy, from peas to				thunderstorms, freezing rain and heavy snow still
plywood. Sometimes the effect will be in our				halt flights and probably will for many years. It is
favor, sometimes it won't. How much did you pay				just too dangerous to fly in any of those
for vegetables last winter? Why are limes -- small				conditions. You'd think that with all of our
and hard as they are -- so expensive right now?				technology we could fly aircraft into any sort of
Is the quality of lettuce comparable to its price?				weather! You can avoid the inconvenience of flight
Contract prices on the Chicago Board of Trade				delays by planning around the weather. Fog is
are very weather sensitive. Weather has such a				most common in late fall and early spring, and
huge impact on the commodities market that				usually lifts to a tolerable level by 10 a.m. Los
traders and analysts pay hundreds and even				Angeles, Denver, Salt Lake City and San Francisco
thousands of dollars a month for commentaries				get a lot of early morning fog during the winter.
on long-range weather forecasts. These				Plan to arrive at those destinations during the
commentaries make the rounds among traders				afternoon to avoid flight delays.
and analysts two or three times a week. Based				On the other hand, summer thunderstorms rattle
on these commentaries, the price of grain, cattle,				the windows around Denver during the late
beans, and all sorts of agriculture products is				afternoon and evening, while Phoenix sees windy
driven up or down.				evening thunderstorms. Arrive by mid afternoon
Traders look for the elusive normal weather. If				to avoid these nuisance storms. If you are
the summer rainfall forecast for the C Corn Belt				heading into the Midwest, thunderstorms tend to
of Nebraska, Iowa, and Illinois is for above normal				roll into Chicago and St. Louis after midnight,
rainfall, futures may rise in anticipation of the crop				delaying red-eye flights. Just a little planning will
getting too much moisture, stunting its growth.				save you the hassle of finding something to do at
The same principle applies if the forecast is for				the airport while waiting for the next flight, or
too little rainfall. If the forecast calls for near				worse yet, missing a connecting flight and ruining
normal rainfall, invariably the price of corn will fall in				your vacation.
anticipation of a very good crop and too many				Did you know that today's weather will affect the
bushels of corn on the market in the fall and				aches and pains you will feel in two or three
winter. In other words, if the trading price is high,				days? At least that is what some physicians
you'll pay more at the grocery store; if it is low				believe. I always thought today's weather brought
because of "normal" weather, you pay less.				me today's aches and pains, but it appears the
Are you planning to do a little construction later				human body has a lag time of several days. It is
this summer? Buy plywood before the first				possible to predict when you and I will feel these
tropical storm forms over the Atlantic Ocean. The				aches, pains and migraines a day or two in
price of plywood soars as tropical storms and				advance. Think of how wonderful it will be in the
hurricanes approach the coast of the United				future when you can call the doctor and the
States. People in the path of these storms buy up				appointment desk will have an opening available
plywood to "batten down the hatches," creating				for you because your medical records matched
local shortages. Those shortages are filled by				the criteria for today's aches-and-pains index!
drawing on supplies from the rest of the country,				The use of weather information goes far beyond,
limiting stocks and driving up prices.				"partly cloudy with a 30 percent chance of rain."
Accurate weather forecasts help some				The price of food and the convenience of having
businesses compete. The retailer Sears, Roebuck				items stocked at your store, the mini-golf place
and Co. had its own meteorologists for many				open when you'd like to go and the supply of
years so they could sell items based on the				electricity for your home are all governed by the
weather. Fans and air conditioners were in stock				weather. Your physical health is affected by the
before a heat wave hit. Umbrellas went on sale				weather. Many of the things you will do this day
when it rained. Subway's corporate headquarters				will be based on the weather - past, present and
tracks individual store sales against the weather. It				future.
uses a history of weather and store sales along

Weather Forecast

Weather affects every aspect of the economy