Seed CX conducts thorough and robust economic research into a variety of aspects related to its products. The goal of this research is to provide a detailed understanding of the cash market dynamics taking place within each of the products in order to better shape the contracts being constructed. Additionally, as an aggregator of economic data, Seed acts as a third party disseminator of the data it receives through frequent reports distributed to industry and market participants as well as constructing a series of price indices for these emerging commodities. This information helps both industry participants and traders track the state of the market and provide economics tools to analyze future trends.
Through its strong relationships, Seed is able to receive and analyze up to date market information from major industry participants as well as obtain current data from leading international and government sources. Through robust research efforts Seed is able to obtain current data, clean the data, and present it in a meaningful way.
As Seed deals in new and emerging commodities, often times these markets will not have established baseline pricing information. This is where Seed comes in. As a third party aggregator of economic and pricing data Seed looks to establish these baselines through the construction of price indices in these markets.
A price index is a normalized average of price for a given product for a particular region and period of time. It is designed to help compare how price behave as a whole between time periods or geographical locations. Price indices have several uses. For particularly broad indices, the index can be said to measure the economy's general price level, and more narrow price indices can help producers with business plans and pricing.
Seed constructs these price indices in conjunction with major industry participants in order to obtain accurate reflections of market dynamics and provide these industries with baseline pricing information.