OREANDA-NEWS. November 24, 2016. Following an annual review in accordance with its rules, the target constituent weights for the BofA Merrill Lynch Commodity Index eXtra (MLCX) will rebalance to the values shown in Table 1 below on December 31, 2016. Similar changes will propagate across the MLCX sub-indices.

Cocoa will be added to MLCX at the December 31, 2016, rebalancing with a 0.70 percent weight as it now meets the quantitative criteria for selection and is deemed by the Index Committee to be appropriate. For a second straight year, the Brent Crude Oil weight drops the most (-1.32 percent), while the Gasoline weight increases the most (+0.97 percent). The Copper weight (-0.81 percent) also declines significantly.

MLCX is designed to provide a liquid, consistent, representative and cost-efficient benchmark for measuring commodity market performance. The index has representation in six key market sectors: Energy, Base Metals, Precious Metals, Grains & Oil Seeds, Livestock, and Soft Commodities & Others.

Table 1:  MLCX contract weights

Commodity

2016

                

2017

             

Change

 

Brent Crude Oil

28.116845%

  

26.801118%

  

-1.315727%

  

Gasoline (RBOB)

12.002656%

  

12.969769%

  

0.967113%

  

Gasoil

12.181546%

  

12.043909%

  

-0.137637%

  

Wheat

5.832795%

  

5.983355%

  

0.150560%

  

Corn

5.069962%

  

5.965483%

  

0.895521%

  

Crude Oil (WTI)

5.189844%

  

5.382154%

  

0.192310%

  

Gold

4.677434%

  

4.957877%

  

0.280443%

  

Copper

5.647866%

  

4.838249%

  

-0.809617%

  

Aluminum

3.716389%

  

3.483408%

  

-0.232981%

  

Natural Gas

2.509109%

  

2.803050%

  

0.293941%

  

Live Cattle

3.058645%

  

2.728967%

  

-0.329678%

  

Sugar

2.467653%

  

2.700097%

  

0.232444%

  

Soybean Meal

2.560466%

  

2.539092%

  

-0.021374%

  

Soybean

1.346286%

  

1.344594%

  

-0.001692%

  

Coffee

1.433921%

  

1.211275%

  

-0.222646%

  

Zinc

1.272907%

  

1.109178%

             

-0.163729%

  

Lean Hogs

1.179683%

  

1.030756%

  

-0.148927%

  

Nickel

1.122229%

  

0.822850%

  

-0.299379%

  

Cocoa

0.000000%

  

0.697352%

  

0.697352%

  

Silver

0.613764%

  

0.587467%

  

-0.026297%

  

Table 2:  MLCX sector weights
           

2016

            

2017

             

Change

  

Energy

  

60.000000%

  

60.000000%

  

0.000000%

  

Grains & Oilseeds

  

14.809509%

  

15.832524%

  

1.023015%

  

Base Metals

  

11.759391%

  

10.253685%

  

-1.505706%

  

Precious Metals

  

5.291198%

  

5.545344%

  

0.254146%

  

Soft Commodities & Others

  

3.901574%

  

4.608724%

  

0.707150%

  

Livestock

  

4.238328%

  

3.759723%

  

-0.478605%

  

Source:  BofA Merrill Lynch

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