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 Jan. 24 to Jan. 31.
- Higher U.S. oil production continues to hurt prices and counteract the OPEC production deal
- Cotton is hitting new 6-month highs led by increased Chinese demand while hedge funds increased their bullish buying activity.
- Alcoa’s recent quarterly earnings came with higher-than-expected global demand for aluminum in 2017.
- Check out our previous week’s report to keep track of the commodity trends.
Weekly Market Wrap-up
Energy – An increase in U.S. oil productivity along with concerns surrounding a weaker-than-expected fourth quarter caused oil prices to fall while natural gas continued to underperform on warmer weather expectations.
- Oil – Oil prices dipped this week as U.S. drilling activity countered the OPEC oil production cut while weaker than expected economic data for the fourth quarter dragged crude oil prices down to $52.41 for the week. In this context, you can read about some actionable insights about investing in crude oil.
- Natural Gas – Early gains this week in natural gas due to reserves falling by more than expected were erased by a forecast for warmer weather sending prices for March delivery down to around $3.27 per million British thermal units (mbtu) on Monday.
- Coal – Congressional Republicans began the process of removing Obama’s earlier regulation on coal with a vote to repeal set for later in the week.
Metals – Copper fell this week as earlier optimism regarding Trump’s economic plans began to fade. Supply risk remains high though and hedge funds added to their net long positions. Prices ended the week at $2.67 per ounce.
- Precious Metals – A higher U.S. dollar worked against gold driving February futures down to a 2 ½-week low of $1,182.85. Silver meanwhile managed to eke out a small gain for the week to $17.20 per ounce.
- Other – Alcoa reported higher-than-expected revenue in its quarterly report earlier this week and expects 4% growth in global aluminum demand for the year.
Grains – Wheat prices cooled off somewhat this week but a report that 20% of wheat from a recent Kansas harvest was in poor condition could boost prices next week.
- Corn and Soybeans – A USDA report revealed mixed expectations for corn with a decline in consumption for feed, but an increase in the demand of corn for ethanol. Corn last traded at $358.75 cents per bushel.
Softs – Chinese demand for cotton drove the commodity higher this week with U.S. export commitments up fivefold. Cotton prices ended the week at $74.44 cents per pound.
If you want to know what commodity is right for you, check out our Commodity Investing Database.
Weekly Movement Across Commodity Futures
For this week, we analyzed all commodities by weekly performance and listed the top three performers by weekly percentage gain. All commodities were taken into account and analyzed from a performance perspective only to find the top three.
For a complete list of commodity ETFs, visit here. In case you are wondering how to look for different types of commodity ETFs, you can also screen through commodity futures-based ETFs and physical commodity-backed ETFs.
| Commodity | Weekly Gain (%) | Contract Expiration | Contract Price (as of Jan. 30) | 52-Week Price Change |
|---|---|---|---|---|
| U.S. Cotton | 0.93% | 03/17/17 | $74.38 | $54.54 - $77.97 |
| Silver | 0.10% | 03/17/17 | $17.22 | $14.23 - $21.207 |
| Platinum | -0.15% | 04/17/17 | $995.80 | $852.05 - $1,199.45 |
| Source: Investing.com |
It wasn’t a great week for commodities with the highest performer, U.S. Cotton, gaining just 0.93%. Silver and platinum meanwhile were the next highest performers for the week as investors questioned some of President Trump’s latest policies.
Be sure to check complete lists of agriculture ETFs and precious metals ETFs.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETNs, which behave differently than ETFs, as well as leveraged ETFs which may not be suitable for some investors. Considering the limited data for the year, all ETFs were taken into consideration regardless of YTD gains.
Top Three ETF Winners This Week:
| ETF ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of Jan. 30th) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| UNG | United States Natural Gas Fund | Natural gas | $532.93 | $8.44 | 4.84% | -9.64% | 0.60% |
| UNL | United States 12 Month Natural Gas Fund | Natural gas | $16.44 | $11.31 | 4.53% | -3.25% | 0.75% |
| CPER | United States Copper Index Fund | Copper | $5.72 | $17.62 | 2.80% | 7.77% | 0.65% |
| Source: ETFdb.com |
Natural gas ETFs were the big winners for this week stemming from news of lower-than-expected reserves early in the week. Copper was up mainly on institutional activity as hedge funds added to their net long positions.
Top Three ETF Losers This Week:
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of Jan. 30th) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| PALL | ETFS Physical Palladium Shares ETF | Palladium | $178.23 | $70.57 | -6.57% | 8.22% | 0.60% |
| UGA | United States Gasoline Fund | Gasoline | $70.58 | $28.55 | -2.99% | -8.84% | 0.60% |
| WEAT | The Teucrium Wheat Fund | Wheat | $62.26 | $7.11 | -2.34% | 3.34% | 3.46% |
| Source: ETFdb.com |
Palladium finally dipped, topping our list of biggest ETF losers for the week. Gasoline fell mainly due to the drop in crude oil prices while wheat prices saw a decline from profit-taking activity. In this context, make sure to check a list of energy ETFs.
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.
