April 05, 2018

TellusLabs & CME Group announce a New Distribution Deal!


TellusLabs is excited to announce a new distribution relationship with CME Group, the world's leading and most diverse derivatives marketplace, which offers a wide range of global products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate.


TellusLabs will be working with CME Group to increase access to TellusLabs CHI and NDVI metrics. TL CHI and NDVI are satellite-based scores of plant condition and progress that commodities researchers can use to understand the status of a given crop. They represent a new suite of signals for grains and oilseeds.


Why these data sets are useful:

  • Crop Masking: Because TellusLabs maps where individual crops are grown; our metrics only look at pixels planted for a specific crop. So, for example, TL Crop Health Index (CHI) Corn for Iowa will only consist of the CHI for the corn pixels in the state of Iowa. TL Normalized Difference Vegetation Index (“NDVI”) Soy for Córdoba, Argentina will only utilize the NDVI for soy pixels in Córdoba, Argentina. That means the score is much cleaner than traditional data. This “crop masking” improves the scores’ correlation with end-of-season yield by 20-30%*.
  • Daily frequency: Typical satellite-based indexes are produced every 8 days. TellusLabs sources its imagery from instruments that allow us to provide CHI and NDVI values on a daily basis, ensuring fresh insights for our users.
  • Complementary to weather: Agriculture markets have been using weather data for analysis since ancient Sumeria. We believe that analysts who rely on weather alone are only getting half of the story. Both CHI and NDVI data products are effective tools to aid researchers and traders seeking a satellite-based (or “optical”) complement to weather data in their analysis.

We believe these crop indices have the potential to make significant improvements to analytics based on only traditional metrics and that they will contribute analytic value at every spatial scale: field, regional, national, and global.


These metrics are available on CME Datamine here.


Click here for the whitepaper to learn more about these metrics and how they can help you make informed agricultural resource decisions.


* Source: TellusLabs Analysis

 

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