Weather#370tier 2experimental liveNew

el nino softs long

cadence: Monthlydata: lowlong only
paper
2017
Source
Cashin, P., Mohaddes, K., Raissi, M. (2017). "Fair weather or foul? The macroeconomic effects of El Niño." Journal of International Economics, 106, 37-54.
Read the paper →

What it checks

When NOAA's El Niño index (ONI) hits strong territory (>= +1.5), coffee, sugar and soy supplies tighten globally. Companies heavily exposed to those inputs (Starbucks, ADM, Bunge) tend to rise over the following 3-6 months.

Mechanism

Strong El Niño events (ONI > +1.5) drive supply-side shocks in soft commodities — coffee (Brazil drought), sugar (Indian monsoon disruption), soy (South American drought). Consumer-staples firms heavily exposed to coffee and soy as input costs (Starbucks, ADM, BG) historically LIFT over 90-180 days as price escalation flows through to revenue/mix.

No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag, or once a multi-family blend that includes it earns a champion slot.

Signal rule

noaa_oni ONI >= 1.0 / 1.5 (strong El Niño) with 14d publication lag (T+1) -> LONG soft-passthrough equity (SBUX, KO, ADM, BG, HSY) for 90/180 trading days.

Data dependencies

  • daily_prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

  • noaa_oni

    Worker data table — see services/worker schema.

Expected edge

Paper alpha
+3-7% over 90-180d
Paper window
T+14d to T+180d

+3-7% over 90-180d on soft-exposed staples during strong El Niño (CMR 2017).

Example tickers where this is likely to fire

Illustrative only — the signal fires based on the live data, not a fixed list.

Related families

Explore el nino softs long on alphactor.ai

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For informational and educational purposes only. Not financial advice. Learn more