Timeline for Why does the coffee price tracking index Dow Jones-UBS Coffee differ so much from the actual coffee price?
Current License: CC BY-SA 4.0
11 events
| when toggle format | what | by | license | comment | |
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| Sep 1, 2019 at 18:15 | vote | accept | v0rin | ||
| Aug 27, 2019 at 20:08 | answer | added | Jim | timeline score: 1 | |
| S Aug 27, 2019 at 1:21 | history | suggested | Rodrigo de Azevedo | CC BY-SA 4.0 |
Edited title.
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| Aug 26, 2019 at 22:43 | review | Suggested edits | |||
| S Aug 27, 2019 at 1:21 | |||||
| Aug 26, 2019 at 21:19 | answer | added | demully | timeline score: 3 | |
| Aug 25, 2019 at 20:45 | comment | added | will | ... versions include a rate leg, amd the versions in other currencies have currency components to reduce the fx risks, where its adjusted on some basis. These indices slowly drift away from the spot value. They will also keep the performance from those times when the spot and futures prices diverge, or, say, when the front month explodes in value due to a temporary shortage, the index will climb, and it will then roll into the next future which has not experienced high returns. The spot then decreases again, while the index remains elevated. This is another example where they diverge. | |
| Aug 25, 2019 at 20:41 | comment | added | will | The ubs commodity etfs track indices with an embedded fee to account for replication and funding costs. The index of a "dj ubs" etf is probably bcom coffee (the dj commodity indices were all renamed to bloomberg commodity, administered by bloomberg, owned by ubs), the bcom indices hold front month futures and roll every other month to the next future (in some cases they'll roll to a Slightly further out future if its more liquid). This means that there is a basis component that accumulates in the level of the index. What I have described are the excess return versions, the total return... | |
| Aug 25, 2019 at 14:26 | comment | added | Alex C | I suggest to compare two things, rather than three to keep it simpler... Also if you google contango effect ETF, you can read about the discrepancy between the oil ETF USO and the spot price of oil, which may be similar to what you are seeing in Coffee... | |
| Aug 25, 2019 at 14:00 | comment | added | Alex C | US Coffee C are futures prices in dollars, dow jones ubs coffee BUCKCDE is a total return index in Euros from investing in coffee futures, macrotrends historical chart is not clearly labeled but is probably Spot price (not futures) in dollars. So they are 3 different things. ETF's generally trak futuures, which over the long run can behave differently from Spot. | |
| Aug 25, 2019 at 9:55 | review | First posts | |||
| Aug 25, 2019 at 11:45 | |||||
| Aug 25, 2019 at 9:54 | history | asked | v0rin | CC BY-SA 4.0 |