Econophysics to unravel the hidden dynamics of commodity markets
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Commodity prices act as leading indicators and have important implications for output and business fluctuations, but their dynamics are not well understood. We used some econophysic tools to evaluate five agricultural commodities traded at the NYBOT (cocoa, coffee, cotton, frozen orange juice and sugar), both in price and volume. Results show important differences between price and volume fluctuations and among the commodities. All commodities have high volatile but non-random dynamic, the less so the larger their market.
KeywordsEconophysics Non linear dynamics Derivative Agricultural commodity Futures
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