Weekly Insights: 1 July - 5 July

MAF Intelligence introduces Weekly Insights, wherein we share our findings as derived from our quantitative models. This week, we identified trends in certain ICE, SGX, DCE and SHFE commodities. 

• Strong correlation between ICE sugar and ICE 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. 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. 

That's it for this week's edition of Weekly Insights, and we hope you find it useful! For more frequent updates, do check out our Twitter and WeiBo.

Stay tuned to next week's edition of Weekly Insights! Have a great day ahead! 

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