Indexes are among the most valuable tools for analyzing commodity markets as they allow visualizing price trends and tracking temporal changes in exchange turnover of the main commodity groups.
There are two types of indexes:
- Individual indexes (based on a specific commodity)
- Group indexes (based on several homogeneous indicators)
Individual indexes can show with maximum accuracy the price and turnover changes for a specific commodity, whereas the key advantage of group indexes is their simplicity and clarity in depicting the general situation in the market.
Indexes are useful for retrospective analysis and for building projection models.