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.28 to March 6.
- Oil fell this week as investors worried Russia may not comply with OPEC production cuts and Chinese growth data came in less than expected.
- Natural gas prices finally rose this week as colder weather swept across the U.S., driving demand higher.
- Agricultural commodities rose this week as changes to the Renewable Fuel Standard and higher Chinese demand helped to lift corn, soybeans and cotton prices.
- Be sure to read our previous week’s report to become familiar with commodity market trends.
Weekly Market Wrap-up
Energy – Oil retreated slightly this week on concerns over Russia’s compliance with OPEC and lower growth data out of China. Meanwhile, natural gas prices finally rose as colder weather sent demand higher.
- Oil – Lower growth estimates for China sent crude oil lower to $53.10 per barrel as of Monday, while concerns over Russia’s compliance with the OPEC cuts added to investors’ worries. Check out our take on key actionable ideas to invest in crude oil.
- Natural Gas – U.S. natural gas deliveries for April jumped 3.2% to around $2.92 per million British thermal units as long-awaited colder weather finally hit the U.S., driving demand higher.
- Coal – President Trump is expected to begin easing regulations on coal this week. Meanwhile, a recent report revealed that U.S. coal production peaked in 2007 and has been declining ever since.
Metals – Lower growth expectations for China sent most metals lower this week. Gold trimmed losses after a North Korean missile test spooked investors. Copper continued to decline, despite production issues with the mine strikes.
- Precious Metals – Gold traded basically flat for the week ending at $1,234.05 a troy ounce for April delivery, after data showing interest rates were likely to go up this year. Besides, a North Korean missile test rattled investors, offsetting any further losses.
- Other – Copper prices slipped to $5,852 a ton despite production problems after investors became concerned about long-term demand, given China’s lower growth estimates.
Grains – Unfavorable U.S. weather helped wheat prices rise near a 3-week high to $4.59 a bushel. Dry conditions were largely responsible for the gains.
- Corn and Soybeans – Speculation on changes to the Renewable Fuel Standard helped corn and soybean prices rise this week.
Softs – Chinese demand helped cotton prices rise to $79.21 cents per pound, while technical support provided additional bullish activity.
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.
|Commodity||Weekly Gain (%)||Contract Expiration||Contract Price (as of March 6)||52-Week Price Change|
|U.S. Cotton||3.64%||05/17/17||$79.09||$55.67 - $79.46|
|U.S. Wheat||3.61%||05/17/17||$459.75||$381.25 - $523.88|
|Natural gas||3.42%||04/17/17||$2.87||$1.678 - $3.994|
U.S. cotton was the best performing commodity for the week as Chinese demand helped lift prices, while U.S. wheat gained on dry weather conditions. Natural gas made a comeback as well, as colder weather finally triggered higher demand.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Considering the limited data for the year, all ETF’s were taken into consideration regardless of YTD gains.
Be sure to check the complete list of commodity ETFs on ETFdb.com.
Top Three ETF Winners This Week:
|ETF Ticker||ETFName||CommodityCategory||Assets($ Million)||NAV (as of March 6)||Return (Weekly %)||Return (YTD %)||Expense Ratio|
|UNG||United States Natural Gas Fund||Natural Gas||$547.05||$6.92||5.97%||-25.91%||0.60%|
|UNL||United States 12 Month Natural Gas Fund||Natural Gas||$11.06||$10.04||5.46%||-14.11%||0.75%|
|WEAT||The Teucrium Wheat Fund||Wheat||$70.02||$7.47||4.04%||8.58%||3.46%|
Natural gas ETFs were this week’s big winners after natural gas prices rose on colder weather, marking the first real gains for the commodity this year. Wheat-based ETF WEAT was the third-largest ETF gainer for the week, with better performance based on dry weather conditions.
Top Three ETF Losers This Week:
|ETF Ticker||ETFName||CommodityCategory||Assets($ million)||NAV (as of March 6)||Return (Weekly %)||Return (YTD %)||Expense Ratio|
|PPLT||ETFS Physical Platinum Shares ETF||Platinum||$551.31||$93.64||-4.61%||8.37%||0.60%|
|UGA||United States Gasoline Fund||Gasoline||$61.11||$27.17||-3.48%||-13.25%||0.60%|
|UHN||United States Diesel Heating Oil Fund||Diesel Heating Oil||$6.06||$15.37||-2.60%||-8.40%||0.60%|
Platinum, gasoline and heating oil ETFs were the week’s biggest losers. A high U.S. dollar and lower-than-expected growth in China were responsible for the losses.
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.