In the Switzer Super Report on 18 November last year I discussed the technical cases for and against the potential outcomes for the Continuous Commodity Index chart at that time and how those outcomes might affect Australian resource stocks.
Given the movement in the Continuous Commodity Index ($CCI) over the last month, it appears that the ‘for’ case has well and truly come to the fore.
Strong rise in commodity indices
The last four weeks has seen a sharp rise in the CCI. Being an equally weighted index across 17 different commodities, it takes more than the rise in a single commodity to cause such a pick up. The other commodities indices, the CRB Index and S&P GSCI, which use different compositions and weightings for their respective indices, have also risen sharply over the same period.