Iceland has a history of volcano eruptions. Probably the most signifcant is the massive eruption of the Laki volcano in 1783 that lead to one of the greatest disasters in living history.
The Laki volcano eruption occurred in the June of 1783 killing thousands and spreading a massive haze that covered most of Europe and parts of North America. Historical accounts suggest the cloud extended into Asia and North Africa.
Although the eruption was in Iceland, the meteorological impact brought unprecedented weather patterns with violent thunderstorms and hailstorms that killed livestock in the fields and destroyed crops. The weather pattern changed so dramatically that it affected vital crops as well a massive loss of livestock that lead to widespread famine across Europe. In reference to the Laki volcano eruption in Iceland, Benjamin Franklin ,during a lecture in 1784, made the following comments ‘….when the effect of the sun’s rays to heat the earth in these northern regions should have been greater, there existed a constant fog over all Europe, and a great part of North America…’
The Laki volcano eruption therefore, effectively eradicated the summer of 1783. The sun was obscured by the vast cloud caused by the Laki eruption and, what should have been a warm summer in the northern hemisphere, took on winter proportions, not just in Iceland, but all over Europe. It was reported that the sun either remained as a pale ghost or took on a strange, blood red color in the volcanic haze.
History shows that repercussions of the Laki Volcano eruption resonated throughout Europe for the next few years. The cold summer of 1783 was followed by an extreme, harsh winter in 1784, even in North America where it was reported as one of the coldest on record. It is also suggested that the Laki Volcano eruption contributed significantly to the French Revolution. After several years of extreme weather in Europe following the Laki eruption, the ensuing destruction of crops and livestock brought famine and poverty that built up in France, triggering the Revolution which began in 1789.
If history is indeed repeating itself, the volcanic ash moving over Europe could have a significant impact on crops and livestock prices in the near future. Any reduction in crop production could trigger a major rally in commodity based futures. For information on strategies using either futures or options you can contact your representative at Trader Network at 1-800-521-0705.
Taken from http://www.kwintessential.co.uk/articles/article/Iceland/Laki-Volcano-Eruption-Iceland/529
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