What is CRB index?
The Commodity Research Bureau (CRB) is the earliest commodity index, which was established in 1957. It was originally composed of 28 commodities, 26 of which were listed in the United States and Canada. 1986, the index began trading on the New York Mercantile Exchange (now incorporated into NYBOT). Reuters owns the ownership of this commodity index. CRB index consists of a package of commodity prices, and the commodity index calculated on this basis reflects the overall fluctuation of commodity prices in the United States, enabling institutional and individual investors to take advantage of index trading to gain profit opportunities brought about by comprehensive changes in commodity prices. CRB index initially gives every commodity the same weight, so the reverse change of commodity prices will not lead to an extremely huge change in the value of CRB index. At the same time, when calculating the index value, CRB index uses contract extension and geometric average technology to stabilize the fluctuation of index price, thus creating a relatively smooth price trend.