MAF Intelligence introduces Weekly Insights, wherein our analysts report on the latest trends and patterns in the current marketwe share our findings as derived from our quantitative models. This week, we share our identification on identified trends in certain ICE, SGX, DCE and SHFE commodities.
- Strong correlation between ICE coffee sugar and ICE sugar coffee at 91.27%. From the Cross-Correlation Chart, we can gather a high correlation between the ICE Sugar No.11 Futures and ICE Coffee "C" Futures from their price movements. It could be a good pair trading strategy for them.
- Deep backwardation in SGX Iron Ore.
- Price of SGX Iron Ore fully drives FFA freight rates up. Looking at the Correlation Chart, we can see that as the As the SGX Iron Ore (SGX, FEF) rises, FFA freight rates quickly follow in recent transactions. This may be a continuing trend?
- Comparing the prices of DCE Iron ore and SHFE Rebar, spread trading is more intuitive.
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