What Is the Commodity Research Bureau?

The Reuters Commodity Research Bureau Index (CRB, or Commodity Research Bureau) is a futures price index compiled by the U.S. Commodity Investigation Bureau based on a variety of basic economically sensitive commodity prices in the world market, usually referred to as the CRB index. It is the earliest created commodity index. It was born in 1957 and was composed of 28 kinds of commodities.

Reuters Commodity Research Bureau Index

Reuters

On June 20, 2005,

The number of varieties covered by the RJ / CRB index increased from 17 to 19, which was increased after excluding one platinum

As the CRB index covers

Relationship with inflation

Generally speaking, when looking at the state of inflation, the first thing to think of is CPI and PPI. However, these two data are published once a month and reflect the situation of the previous month. In some aspects, the biggest The problem is its backwardness,

From July 11, 2005, the New York Futures Exchange launched a new CRB index futures. The 50-year-old CRB Commodity Index is adjusted for the 10th time. New York Futures Exchange launches new CRB index futures

New York Futures Trading launched a new commodity futures index contract on July 11, 2005. This contract is a readjusted commodity index futures contract based on the original Reuters CRB commodity index futures contract. And Reuters will cooperate with Jefferies Financial Products, a subsidiary of Jefferies Group, to adjust the Reuters Commodity Research Bureau (CRB) index. The index will be renamed the Reuters / Jefferies Commodity Research Bureau Index (RJ / CRB) as of June 20, 2005.

After the CRB Commodity Index was developed in 1957, it was often used as an indicator to reflect the overall level of commodity prices. At first, agricultural products had a larger weight in the index. Since then, the index has undergone nine adjustments, which can more and more comprehensively reflect the overall trend of commodity prices, especially the trend of energy prices. The adjusted Reuters / Jefferies CRB index (RJ / CRB) can better reflect the rapid development of the commodity futures market.

The New York Futures Exchange has been trading the CRB Commodity Futures Index since 1986, and the index was renamed the Reuters CRB Index in 2001. The index is a leading indicator of global commodity price fluctuations. It has been the focus of economic analysts and investors for 50 years and covers commodity futures contracts such as energy, industrial metals, precious metals, grains, livestock products and soft commodities. Because the CRB index includes the price fluctuations of core commodities, it generally reflects the dynamic information of the world's major commodity prices. It is widely used to observe and analyze price fluctuations and macroeconomic fluctuations in the commodity market, and can reveal the future of the macroeconomics to a certain extent. Towards.

The New York Futures Exchange said that the adjusted index will include 19 commodity futures contracts, two more than the original 17 commodity futures contracts. The data on futures contract data for three commodities, unleaded gasoline, aluminum (information forum) and nickel, Included in the index, at the same time platinum will be removed from it. The weights of the constituent commodities of the new index will also be adjusted once a month and will be valued based on the prices of recent months' contracts. The allocation of weights will take into account the relative importance and liquidity of different commodity markets.

The RJ / CRB index will cover 19 commodity futures markets. The index futures contract includes four contracts in March, June, September and December. The first listed in September 2005 is the September 2005 contract. For investors, an important change in the new index contract is that the contract size is reduced from the original 500 US dollars per point to 200 US dollars, so that the threshold for investors to participate in the index futures contract is greatly reduced.