CTD Indices announced a partnership to launch, market, and distribute the SAFRAS CTDI Brazilian Soybean Index.
The collaboration, a first of its kind solution for the international soybean market marks the arrival of the SAFRAS CTDI Brazil Soybean Index backed by subject matter experts SAFRAS & Mercado from the Brazilian agricultural markets.
Brazil’s first-ever, national soybean index is underwritten by CTD Indices’ quant driven, financial analytics and uses MarketDesk’s proprietary cloud-based data distribution technology.
The emergence of the initiative is centered on Brazil, the world’s largest producer and exporter of soybeans. With China the world’s largest soybean importer, the current regional pricing validation centered around the port city of Santos requires a broader solution appropriate to 21st century real time trading requirements.
Paul Hsu CEO – CTD Indices said “The SAFRAS CTDI Brazil Soybean Index is significantly different compared to what’s currently on offer in the global commodities futures market. While the major South American Soybean futures contract is based solely on the export price at the Brazilian port city of Santos; the SAFRAS CTDI Brazil Soybean Index takes into account transaction prices from 37 different cities across Brazil, making it a true national, benchmark price.”
Raphael Juan, Director of Markets at CMA Group (SAFRAS & Mercado) said, “This new index is a reliable benchmark price for the Global Soybean markets and an important indicator for the financial industry, which will be able to use the indicator in different ways. Studies have shown an important correlation with the trading price of the grain in Brazil. This index adheres to the best practices of the IOSCO Statement of Compliance, and we believe that the Agro-Financial industry will quickly adopt this new benchmark.”
Currently, Brazilian soybean prices are being set at varied cities across the country, where physical trading takes place in numerous regional markets. A lack of a transparent, unified national soybean price is problematic for the global financial industry where some soybean experts have called for rigorous market data instrument sophistication.
A reliable and transparent national benchmark price is increasingly important to producers, cooperatives, industries, warehouses, transporters, grain traders, exporters,importers and financial participants for production and hedge markets.
Brice Hamon CEO – MarketDesk offered, “The partnership between MarketDesk, SAFRAS & Mercado and CTDI allows the creation of a new global market instrument for a major agricultural product. This new global initiative leverages the expertise of each partner to reach and develop a new global market.”
Darren Bishop Global Head of Partnership Strategy at MarketDesk commented “The SAFRAS CTDI Brazilian Soybean Index is a new and highly efficient tool that offers users aggregated soybean prices throughout Brazil. This fulfils the market’s need for a reliable, objective soybean price reference index defined at the national level. Customers in South America can access the SAFRAS & Mercado soybean data via the SAFRAS Plataform (https://news.safras.com.br/eng/service-safras-ctd/).
About CTD Indices
CTD Indices is an innovative provider of indices and index solutions to the global financial services industry. Our focus is unique in that we create high quality benchmarks based around commodity futures and cash markets that measure not only economic activity for these markets, but also anticipate how these movements will impact investors trading on exchanges. We provide bellwethers for proactive, not reactive investing, to meet investors’ needs for an ever-changing global market.
About CMA’s SAFRAS & Mercado
CMA Group is a Brazilian multinational company involved in developing high-tech solutions for the financial, commodities, education, telecommunications and data center markets since 1973. Headquartered in Brazil with nine subsidiaries, plus additions in the United States, other Latin American countries and Europe, serving customers in thirty-five countries. Its SAFRAS & Mercado division is the most important center for information and analysis of commodities market and agribusiness in Brazil, South America and around the world.
MarketDesk delivers innovative global market data solutions featuring a one of a kind modern platform for content owners to distribute their financial data and content to a global community that prizes ease of use and mobility with cutting edge technology. Through MarketDesk, content owners can distribute their data to clients, reach new ones and connect employees and applications over the internet and mobile networks, under their brand and control.