Spread
Spread refers to the price difference between two related contracts, markets, or instruments.
In commodity markets, spreads are used to compare prices across time horizons, locations, or qualities, providing insight into market structure beyond outright price levels.
Interpreting Spreads
Looking at spreads allows market participants to:
• Assess relative value rather than absolute price
• Identify changes in market structure
• Detect emerging imbalances
Spreads and market conditions
Spreads often widen or compress as supply-demand dynamics, inventories, or expectations shift. These movements can signal structural change even when headline prices appear stable.
At Datasphere Analytics, spreads are analyzed as contextual signals that support interpretation of broader market dynamics.
