QuantCube Technology Launches Hydric Stress Indicator
Press Release
Providing Early Risk Signals for investors in Agricultural Commodities
Real-time drought monitoring enhances market intelligence for commodity traders.
PARIS , 13 February 2025 – Alternative data analytics specialist QuantCube Technology today announced the launch of its Hydric Stress Indicator, a powerful tool designed to help commodity traders, financial institutions, agricultural growers and food producers to monitor drought risks in key crop-producing regions across 20 countries.
Using real-time meteorological data and satellite imagery, the QuantCube Hydric Stress Indicator tracks water stress levels in the soil and provides early warnings of potential drought, categorised by agricultural commodity type, including for Corn, Soybean, Wheat and Rice. By delivering daily insights into water stress levels, the indicator helps traders to forecast supply risks, anticipate price volatility, and optimise their strategies in an increasingly climate-driven market.
The QuantCube Hydric Stress Indicator demonstrates clear correlations between drought conditions and commodity price volatility to help commodity traders to optimise their trading strategies. Use cases include:
U.S. corn market: Correlation between drought conditions in U.S. corn-producing regions and price volatility of corn futures on the CME, with price fluctuations driven by drought and prolonged dry spells.
Regional wheat production: Correlation between the severity of drought in key U.S. states – including Kansas, Nebraska, and Montana – and the impact on supply chains and price stability.
Global insights: Granular, real-time data for localised and global analysis, enabling traders to identify supply-side risks early.
Provided at the country and regional levels, the QuantCube Hydric Stress Indicator delivers a comprehensive and actionable view of drought risks, enabling more informed decisions to mitigate the impact of extreme weather on the value of agricultural commodities.
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.”
The QuantCube Hydric Stress Indicator is available alongside QuantCube’s Agricultural Yield Forecasts, covering corn, soybean, wheat and rice at regional, national and global levels. By delivering real-time insights on the growth of these crops, the indicators provide a daily estimate on total yields at the end of the harvest up to eight months in advance of the publication of official data.
ENDS
About QuantCube Technology
QuantCube Technology uses artificial intelligence and big data analytics to deliver real-time macro-economic insights. The firm operates one of the largest alternative data lakes in the world, processing more than 14 billion data end points. Sources encompass news, social media, satellite data, professional networks and consumer reviews, as well as international trade, shipping, real-estate, hospitality and telecoms data.
QuantCube’s macro nowcast indices, on variables including economic growth, inflation, employment and international trade, correlate highly with official data and significantly beat the consensus. Financial institutions using QuantCube data benefit from real-time insight, often ahead of official numbers, which they can use to inform their investment strategies.
Headquartered in Paris, QuantCube employs a diverse international team of data scientists with expertise in multilingual NLP, deep learning and machine learning techniques. The company’s shareholders include Moody’s and Caisse des Dépôts and its R&D in computer vision has been partially funded by the European Space Agency (ESA) and French government space agency CNES.
