This key commodity price indicator just set another bearish record

Global commodity prices are have been smashed this year, continuing the trend seen since the start of 2011.

This is no better demonstrated than the chart below. It shows the Thomson Reuters Core Commodity CRB index, a gauge on commodity prices that dates back to 1957.

The index comprises 19 separate commodities, ranging from the highest index weight, crude at 23%, all the way through wheat, nickel, orange juice, silver and lean hogs at 1% apiece.

In broader terms, agriculture makes up 41% of the index, closely followed by energy at 39%. The remaining 20% is split between base (13%) and precious metals (7%).

Thanks to the heavy index weighting for crude oil, something that has fallen to a fresh six-year low on Monday, the index is now trading at the lowest level seen since December 11, 2002.

In 2015 the index has slumped 19%, taking its losses from July 2, 2008 – its all-time record high – to 61%.

It’s an ugly bear market which, for the moment, appears to have no end in sight.

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