CRB, commodities index, from heaven to hell in 5 months

CRB commodities index long term chart (1980-2008) (source: headlinecharts.com)

When we speak about commodities, the CRB index is the benchmark. This index was created in 1958 and originally consisted of 28 commodities listed on the spot or futures markets. Today this famous index reflects 19 listed on the 5 major commodity markets in the world. It includes three different types, petroleum and derivatives, metals and grain or agricultural products.

The crude (West Texas) and its derivatives accounts for a 33% of the index.

The gold, aluminum, copper, corn or natural gas weighs about 6% of the index each.

It was followed by others such as coffee, cocoa, cotton and sugar with a weight of 5% each.

Finally the commodity with less weight are wheat, orange juice, the nickel or silver with a weight of just 1% each.

You can see how in just a few months prices have fallen to 1986 levels.