Ask HN: Does weather affect stock market?

2 pointsjayp083 comments

Hi, I was wondering if there is a way to predict how the stock market is affected by the weather patterns. A good example could be weather in India can cause havoc with agriculture/food production in general. So in some sense it might be affected due to low exports. thanks

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Yes.

Weather is a crucial input toward supply.

Supply can be constrained (as in your example) and output will be lower. Lower output can cause decreased profits or any other host of things that can lower stock price.

Another example could be a drought affecting a publicly owned fruit producer.

To be more direct, weather can affect crop production. Most of which is bought and sold in commodities markets. So if the weather is cold FCOJ is going up.

Of course it affects the stock market but apart from agriculture it's mutably connected with all sorts of other factors like world news, how traders feel and so on. Due to that it's not accurate measurable even when you find parts of the weather that influence the stock market. Even with agriculture there are many side factors that make weather hard to measure accurate, saying that of course a mis-harvest is clear.

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