Commodities in the Crosshairs

In addition to adding another month of strong market tracking performance through the GeoSense tracking index – our month-end trading range outlook projected the BlackRock Russell 2000 ETF (IWM) to be trading at 222 and at the time of this writing IWM is 220.5 – we are taking a closer look at the commodity complex for another opportunity to capture climate volatility in agriculture markets.

So we are shining a spotlight on the world's most popular sweetener: Sugar.

The global sugar market is dominated by the #11 contract, which trades on the Intercontinental Exchange (ICE) in cents per pound. Sugar, like many other agricultural and soft commodities tends to trade in a rangebound channel, until speculative or actual disruptions to physical supply triggers a large price reaction. Dryness in Brazil (the world's larges producer of cane sugar), the exchange rate between the US Dollar and the Brazilian Real, and fluctuations in oil prices, among other factors, have led to a pronounced move in world sugar over the last month. As these are slow-moving catalysts, our tracking index model proves to be a suitable tool to anticipate these price reactions with a 3 month lead time. The backtested history of our sugar index is shown below.?

Please download the AlphaGeo September GeoSenseMarket Intelligence report here to learn more about how to use our guidance as an outsourced investment advisor with respect to climate driven market activity.

We encourage you to reach out to us at AlphaGeo if you have any questions or would like to discuss opportunities to leverage our data in your investment strategies.?