
CommodityHQ.com provides weekly information about any material impact of a major economic, corporate and/or geopolitical event on the global commodities market. The report also analyzes the weekly change in prices of the major commodity futures and commodity-focused ETFs as a result of market changing events and trends. This report covers events and analysis for the week ranging January 2 to January 9.
- Increased U.S. oil production negatively impacted oil prices this week, as investors feared that it could take away from OPEC’s recent deal to cut production overseas.
- Higher expectations for the U.S. auto sector has helped palladium and platinum prices head higher than anticipated.
- Investment company activity was responsible for large swings in coffee and wheat prices this week.
- Check out our previous week’s roundup to sync recent trends in the commodities market.
Weekly Market Wrap-Up
Energy – The first week of 2017 began with positive news for coal on increased Chinese demand and bearish news for oil, as higher U.S. production is expected to offset the production cuts from OPEC nations.
- Oil – U.S. crude futures ticked lower to $52.73 per barrel on news that rising U.S. oil production could counteract OPEC production cuts. The U.S. oil rig count increased for the tenth week in a row to 529.
- Natural Gas – Natural gas futures for February fell 11.8% last week to $3.12 per million British thermal units (mbtu) after a forecast for warmer-than-expected weather in January.
- Coal – China announced a new coal-based plan that could help lift prices and revitalize the U.S. export industry. However, a rising U.S. dollar is a concern moving forward.
Metals – Palladium and platinum were the biggest movers in the metal space, as higher expectations for the U.S. automotive industry helped lift prices. Meanwhile, gold and silver rose on higher interest rates and inflation fears.
- Precious Metals – Gold futures for February rose to $1,187.65 a troy ounce, a six-week high, as the U.S. dollar slipped slightly, and fears of rising inflation and interest rates gripped investors.
- Other – Palladium and platinum rose on higher automotive manufacturing expectations, with the former hitting a five-week high of $758.3.
Grains – Investment rebalancing was the biggest factor in agricultural commodity price swings this week, as companies sold off interests and bought new ones.
- Corn and Soybeans – Corn and wheat rose to kick off the new year on investor short covering, while soybeans fell as investment firms trimmed back their positions.
Softs – Weather conditions in Brazil are largely responsible for coffee’s rise in value, along with sugar. Conditions could change rapidly as we head further into the year.
If you want to find which commodity is right for you, check out our Commodity Investing Database.
Weekly Movement Across Commodity Futures
For the first week of 2017, we analyzed all commodities by weekly performance and listed the top three performers by weekly percentage gain. All the available commodities were taken into account and analyzed from a performance perspective.
Commodity | Weekly Gain (%) | Contract Expiration | Contract Price (as of Jan. 1) | 52-Week Price Change |
---|---|---|---|---|
Platinum | 5.27% | 04/17/17 | $978.35 | $811.6 – $1,199.45 |
U.S. Coffee | 5.22% | 03/17/17 | $144.57 | $111.05 – $176 |
US Wheat | 5.01% | 03/17/17 | $426.75 | $381.25 – $523.88 |
Platinum is this week’s biggest gainer on anticipation of higher manufacturing productivity this year, while U.S. coffee and U.S. wheat rounded out our top three performers for the week.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three gainers and top three losers for the past week. Not included are ETNs, which behave differently than ETFs, as well as leveraged ETFs that may not be suitable for some investors. We also screened out ETFs that have a losing performance overall for the year, showing only those with winning track records.
Top Three ETF Winners This Week
ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of Jan. 9) | Return (weekly %) | Return (YTD %) | Expense Ratio |
---|---|---|---|---|---|---|---|
PALL | ETFS Physical Palladium Shares ETF | Palladium | $178.20 | $72.66 | 11.42% | 11.42% | 0.60% |
PPLT | ETFS Physical Platinum Shares ETF | Platinum | $473.99 | $93.85 | 8.61% | 8.61% | 0.60% |
DBS | PowerShares DB Silver Fund | Silver | $24.94 | $26.01 | 4.63% | 4.63% | 0.79% |
All three top ETF performers for the week were metals, mostly led by higher expectations in the automotive industry. Palladium and platinum were the biggest winners of investor confidence, while silver benefited from both renewed manufacturing expectations and rising interest rates.
Top Three ETF Losers This Week
ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of Jan. 9) | Return (weekly %) | Return (YTD %) | Expense Ratio |
---|---|---|---|---|---|---|---|
GCC | WisdomTree Continuous Commodity Index Fund | Broad Commodities | $219.62 | $19.59 | 1.35% | 1.35% | 0.85% |
CPER | United States Copper Index Fund | Copper | $5.72 | $16.59 | 1.47% | 1.47% | 0.65% |
DBA | PowerShares DB Agricultural Fund | Agricultural Commodities | $722.91 | $20.38 | 2.05% | 2.05% | 0.85% |
Commodities in general enjoyed another positive week, with our top three worst performers all posting positive gains. Copper made our list for worst performers for the second week in a row, despite rising expectations in the manufacturing sector.
We provide this report on a weekly basis. Be sure to check our News section to remain updated on the latest happenings in the commodity space.