CRB index, or to be precise commodity futures price CRB index (Jefferies/Reuters CRB Index) is the most old and best world commodity market indicator. The index is based on 19 commodity futures official prices. It is computed by Commodity Research Bureau. This organization has an access to governments’, private entities’ and associations’ data.

Commodity market. Commodity price CRB index.

Since 2005 the index belongs to Reuters Ltd and Jefferies & Company, Inc. As well as, calculation methodology changed. if before 2005 all prices had the same weight, now each commodity has a unique weight in the index which depends on the importance for the market. The most important commodities in CRB index are energy markets (overall weight is 39%).

By the way, since year 2005 commodity price CRB index is calculated on the daily basis and prices are taken from the futures contract with the nearest expiration date. Before year 2005 arithmetic means were used.

Nowadays the structure of the CRB index is following:

All markets in R/J CRB Index are separated into four groups.

R/J CRB Index vs CRB Spot Index

There are various CRB index and you have to understand that they have differences. I would say that for trading it is better to use R/J CRB Index (as an instrument for market analysis), its futures is traded on ICE and therefore it is easier to find it on many websites. But for trading itself it’s not good because liquidity is too low.

CRB index family classification.

CRB Spot index is a good instrument for making prediction of CCI и CPI.

CRB Spot index is offered in six (!) variations depending on the markets included:  CRB Spot Index, Metals Sub-Index, Textiles Sub-Index, Raw Industrials Sub-Index, Foodstuffs Sub-Index, Fats & Oils Sub-Index, Livestock Sub-Index.

CRB Spot index includes

Commodity market analysis using CRB indexes is one of the fundamental units in inter-market analysis. Analysis of divergences between two indexes and US dollar value can show good understanding of how markets work and where prices will move.

Federal Reserve System takes into account this indexes in inflation level analysis.