Glossary Information Flow and Commodity Prices

Information Flow and Commodity Prices

Information Flow and Commodity Prices

Information Flow and Commodity Prices describe how new information is absorbed into prices across markets.

Commodity markets are fragmented, meaning information may be reflected unevenly across instruments.

Why Information Flow Matters

Understanding information flow allows organizations to:

• Identify where information appears first
• Assess the reliability of price moves
• Interpret benchmarks with confidence

How information enters prices

Prices adjust through spot, futures, and OTC markets, with liquidity shaping the speed and clarity of adjustment.

At Datasphere Analytics, information flow analysis supports confidence in market signals.

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Inventory Signals

Inventory Signals describe how inventory levels inform expectations about supply-demand balance.

Supply Shocks

Supply Shocks describe how unexpected disruptions affect price dynamics in commodity markets.

Risk Anticipation

Risk Anticipation focuses on identifying emerging risks before they fully materialize in prices.

Data-Driven Hedging

Data-Driven Hedging describe how forward-looking insights inform hedging choices under changing market conditions.

Futures Curves & Market Signals

Futures Curves and Market Signals describe how the structure of the futures curve provides insight into underlying supply, demand, and inventory conditions.

Futures Pricing Signals in Commodity Markets

Futures prices are not pure “expectations of the spot price.” They also reflect physical realities and financial frictions—inventory and storage economics, market tightness, hedging pressure, and risk premia.

Commodity Forecasting

Commodity forecasting refers to the process of predicting future prices or availability of raw materials such as crude oil, gas, metals, or agricultural products.

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