Though it has gone through many revisions since the inaugural use, the Continuous Commodity Index (CCI) has aimed to provide an accurate representation of commodity price trends. There is more than one futures contract for a commodity price index, but contract specifications here will refer to the CCI futures on ICE US.
$500 x Index
Quoted in index points, to two decimal places. (e.g. 300.05, 300.10, 300.15).01 = $5; tick size is .05 = $25
January, February, April, June, August and November
Futures trade on ICE US from 2:30 am to 2:45 pm next day
None as of publishing; please consult exchange for additional details on limits.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
*** chart courtesy Gecko Software
The Commodity Research Bureau first developed an index based on commodity prices in the middle part of the last century. Originally, it was composed of twenty-eight commodities. The current representation that is the CCI contains seventeen. They include:
This kind of index may be more difficult to understand than a basket of stocks since the active contract for each commodity changes. The change occurs when the nearby futures contract expires. For this reason, this kind of index may have to be rebalanced. The original CRB index was also heavily weighted towards commodities in the agricultural sector. Now, the balance is relative to the following chart:
*** information courtesy CRB
Since commodity prices are the constituents of the index, the CCI may be influenced by some or all of the same things which will cause fluctuations in commodity prices. These could include - but are not limited to - events or fundamentals like the following:
Disclaimer:There is a substantial risk of loss in futures trading and it is not suitable for all investors. Past results are by no means indicative of potential future returns. Fundamental factors, seasonal and weather trends, and current events may have already been factored into the markets.
Copyright:Any copy, reprint, broadcast, or distribution of this report of any kind is prohibited without the expressed written consent of Futures Press, Inc.
CCI futures may be incorporated into strategies to hedge cash market positions, diversify holdings, or as a means to trade a directional bias on the possible future price trends for commodities.