QuantCube Technology has introduced the Hydric Stress Indicator, a real-time tool designed to help commodity traders, financial institutions, and agricultural producers monitor drought risks across 20 countries. The indicator leverages meteorological data and satellite imagery to track soil water stress, providing early warnings categorised by crop type, including corn, soybean, wheat, and rice.
By offering daily insights into water stress levels, the tool aids traders in forecasting supply risks, anticipating price volatility, and optimising trading strategies. It has demonstrated clear correlations between drought conditions and commodity price fluctuations, particularly in U.S. corn and wheat markets. The Hydric Stress Indicator is available alongside QuantCube’s Agricultural Yield Forecasts, which provide real-time yield estimates up to eight months ahead of official reports. These tools enhance decision-making in a climate-sensitive market by offering granular, real-time analysis at regional and global levels.
Alice Froidevaux, Director of Product Development and CFA ESG at QuantCube Technology, commented: “As climate risks continue to challenge agricultural markets, the QuantCube Hydric Stress Indicator provides traders with a critical advantage in enabling them to anticipate disruptions. In particular, the indicator is a game-changer for participants in agricultural markets eager to optimise their hedging strategies.”
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