Gro Intelligence users are now able to monitor the bulk of the world’s trading in agricultural commodities futures with the recent addition of data from China’s Dalian Commodity Exchange (DCE), the second-biggest trading venue after the Chicago Mercantile Exchange (CME) for key commodities such as corn and soybeans.
The DCE provides data that includes daily high, low, close, and settlement prices, as well as trading liquidity measures of volume and open interest. It covers 10 different commodities related to agriculture, including corn, soybeans, eggs, and palm oil. Besides obtaining daily data for each of these commodity markets, Gro users can analyze historical relationships between prices, supply, demand, and trade. Also available is the forward curve, which portrays the price of a particular commodity for different delivery periods in the future, providing an indication of storage costs and regional availability of a particular commodity.
China is the world’s largest consumer of most commodities, and therefore understanding the role of Chinese markets is important for analyzing global commodity supply and demand. By combining DCE with other sources in Gro, such as CME, users can gain a better understanding of the global futures market size. For example, open interest for DCE and CME corn can be added together, after adjusting for contract size, to understand the evolving market share of each exchange over time. One also could calculate the price spread between corn in the US and China to determine if an import arbitrage opportunity exists.
DCE data in Gro currently goes back to 2014. The data is being backfilled and will soon extend back to 2005.