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
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