Bloomberg Commodity Index
Chart of the Week for November 27, 2015 - December 3, 2015
The Bloomberg Commodity Index is composed of twenty-two exchange traded futures for physical commodities, grouped into five sectors. As of October 30, 2105, the five sectors covered by the index were Energy, Agriculture, Industrial Metals, Precious Metals, and Livestock. Of the twenty-two futures included, as of October 30, Gold, Natural Gas, West Texas Intermediate Crude Oil, and Corn, were the four highest weighted individual commodities in the index.
As noted in the chart above, commodity prices have been generally falling over the past two years. After reaching a high of 137.80 in April 2014, the index closed at 87.43 on October 30, 2015, a decrease of 36.55%. Global growth has been slow to recover from the economic crisis of 2008-2009, and that has lowered demand for commodities while production of commodities have grown over that time. Recently, the slowing economic growth in China has been a major contributor to the decline in commodity prices, as China was a major importer of commodities when its economy was experiencing stronger growth.
Posted by: sarah_oz@yahoo.com
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