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 Feb.1 to Feb.7.
- OPEC announced that production cuts will continue, despite oil’s recent price decline. However, this didn’t stop oil from falling even further for the week.
- Copper prices spiked as mine strikes bumped prices up to a 20-month high.
- Wheat, coffee and corn were the big agricultural winners this week on reduced supply and indications of growing global demand.
- Be sure to check our previous week’s report, so that you are aware of the changing trends in the commodity space.
Weekly Market Wrap-up
Energy – Oil prices struggled to recoup previous session’s losses despite the announcement of OPEC’s production cuts, while natural gas prices extended losses in the absence of cold weather.
- Oil – Oil prices continued to decline this week, even as OPEC nations agreed to keep production cuts in place. Production was down 890,200 barrels per day – the first cut in 8 years. Oil was last trading at $52.97 per barrel.
Make sure to read our list of actionable ideas to invest in crude oil.
- Natural Gas – Further lack of cold weather caused natural gas prices to fall to $2.95 MMBtu – a 12-week low.
- Coal – A report revealed that coal production was higher in January than the same period last year. However, the amount of energy coal produced lagged behind natural gas, thanks to the latter’s cheap availability.
Metals – Gold traded flat for the week, while copper rebounded strongly on Indonesian mine strikes that sent prices higher.
- Precious Metals – Gold prices for February traded at $1,230.85 a troy ounce, holding almost flat for the week, as concerns surrounding a North Korean missile test caused investors to hold their positions until further news.
- Other – A mining strike in Indonesia led copper prices to a 20-month high of $2.82 a pound intra-day for March delivery.
Grains – Wheat stocks were down worldwide, giving investors hope that global demand is growing. This sent wheat prices higher for the week.
- Corn and Soybeans – Corn received a boost this week on higher ethanol demand and a decline in stocks by 35 million-bushel.
Softs – News that Indian demand for sugar is estimated to be 1.5 million tonnes for 2017 sent prices soaring up to $532.40 per ton.
If you are wondering which commodity might be 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.
You can use ETFdb.com’s Screener to see a complete list of commodity ETFs.
| Commodity | Weekly Gain (%) | Contract Expiration | Contract Price (as of Feb. 13) | 52-Week Price Change |
|---|---|---|---|---|
| Copper | 6.32% | 03/17/17 | $2.79 | $2.021 - $2.822 |
| U.S. Wheat | 5.06% | 03/17/17 | $451.75 | $381.25 - $523.88 |
| U.S. Coffee | 2.98% | 05/17/17 | $146.85 | $111.35 - $176 |
An Indonesian mine strike helped lift copper prices to a 20-month high, making copper the best weekly commodity performer. A report of global wheat stock reductions implied higher worldwide demand while coffee was boosted on reports that the drought in Brazil reduced the crop’s yields.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Considering the limited data for the year, all ETF’s were taken into consideration regardless of YTD gains.
Top Three ETF Winners This Week:
| ETF Ticker | ETF Name | Commodity Category | Assets ($ Million) | NAV (as of Feb. 13) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CPER | United States Copper Index Fund | Copper | $5.72 | $18.10 | 5.60% | 10.70% | 0.65% |
| PALL | ETFS Physical Palladium Shares ETF | Palladium | $178.23 | $75.16 | 4.59% | 15.26% | 0.60% |
| WEAT | The Teucrium Wheat Fund | Wheat | $62.26 | $7.50 | 4.17% | 9.01% | 3.46% |
Copper topped this week’s list of best performing commodity ETFs thanks to an Indonesian mine strike while palladium made a comeback after some profit taking last week. Wheat rounded out this week’s list on news of higher global demand and a reduction in supply.
Get a complete list of Copper ETFs and Agriculture ETFs on ETFdb.com to know how they performed over the week.
Top Three ETF Losers This Week:
| ETF Ticker | ETF Name | Commodity Category | Asset ($ Million) | NAV (as of Feb. 13) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CANE | The Teucrium Sugar Fund | Sugar | $5.51 | $13.86 | -2.39% | 6.62% | 1.76% |
| USAG | United States Agriculture Index Fund | Broad Agriculture | $1.90 | $19.00 | -2.31% | 5.15% | 0.65% |
| UNG | United States Natural Gas Fund | Natural Gas | $532.93 | $7.60 | -0.91% | -18.63% | 0.60% |
Despite this week’s revelation that India’s demand for sugar is expected to be 1.5 million tonnes for 2017, the sugar ETF CANE led this week’s list for worst performer. Unsurprisingly, natural gas made the list yet again with UNG now down 18.63% year-to-date.
You can also browse through a list of natural gas ETFs on ETFdb.com to learn about other available ETFs within this space.
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.
