AI-Powered Commodity Price Predictions: A Game-Changer for Farmers?
Predicting the future of commodity prices has always been a daunting challenge, but a groundbreaking artificial intelligence (AI) tool is now stepping up to the plate. Developed by Virginia-based Helios Artificial Intelligence Inc., CommodiTrack leverages global climate data and advanced AI algorithms to forecast price movements for 58 commodities—ranging from corn and soybeans to wheat—while offering tailored buy and sell recommendations.
“Our goal was to provide farmers with precise price predictions to help them manage their businesses more effectively and gain hyper-granular insights,” explained Francisco Martin-Rayo, CEO and co-founder of Helios AI. “With CommodiTrack, farmers can analyze global trends, including competitors outside the U.S., to refine their buying and selling strategies.”
How It Works
CommodiTrack doesn’t just rely on climate data to predict price fluctuations; it also offers users access to detailed production and climate insights for the top 10 producing countries of each commodity. For instance, the tool can identify which growing season over the past decade most closely mirrors the current conditions in a specific country. This level of detail allows farmers to make more informed decisions.
The platform is available for 99permonthpercommodityor699 per month for access to all 58 commodities. (For a limited time, the full package is discounted to $399 until the end of March.)
A Growing Demand for Data
The COVID-19 pandemic disrupted global supply chains, sparking heightened interest in daily commodity price information. Mark Haraburda, CEO of Barchart, a Chicago-based agricultural market data tracker, noted that CommodiTrack simplifies access to data that was previously challenging to compile.
“Weather is a major factor in commodity markets, but the sheer volume of weather data involved in any analysis can be overwhelming,” Haraburda said. “Using AI, machine learning, and big data tools to analyze such datasets is a logical and powerful approach.”
Who Stands to Benefit?
While CommodiTrack holds significant potential, Helios AI acknowledges it may not suit every farmer. According to Martin-Rayo, the tool is particularly valuable for farmers who have flexibility in deciding when and how to sell their crops.
“A Kansas wheat farmer may already know everything about their own fields, but they might not have insights into wheat production in Minnesota, Russia, Ukraine, or France,” he said. “For medium-to-large farms, understanding what’s happening globally can be a game-changer in shaping their strategies.”
Chad Hart, an Extension economist at Iowa State University, echoed this sentiment, suggesting that farmers with 3,000 or more acres are likely to benefit the most from the tool.
A Tool, Not a Miracle Solution
To validate CommodiTrack’s accuracy, Helios AI compared its predictions against actual price data from the past decade. The tool correctly forecasted price movements 70% of the time. However, Martin-Rayo emphasized that CommodiTrack focuses solely on climate data, leaving out other critical factors like demand-side dynamics.
“This tool is very supply-driven,” Hart noted. “It doesn’t account for demand-side factors, so farmers using it may want to supplement it with other tools to get a fuller picture of the market.”
Hart also cautioned that farmers should work closely with a Helios AI representative, broker, or advisor to ensure they fully understand how to interpret and apply the tool’s recommendations. For example, a “buy” signal from CommodiTrack indicates a favorable time for end users to purchase but suggests producers should hold off on selling.
The Bottom Line
While CommodiTrack isn’t a one-size-fits-all solution, it offers farmers a valuable edge in navigating volatile markets. As Hart put it, “The key is figuring out how to integrate this tool with your existing practices. Most farmers are already doing a lot right—this is about building on that foundation and staying ahead of the curve.”
For farmers willing to embrace AI-driven insights, CommodiTrack could be the missing piece in their strategic toolkit.
