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 weeks ranging April 10 to April 17.
- Energy prices flattened this week as investors sold off gains from the recent rally in oil, while natural gas prices trickled lower on milder weather expectations.
- Geopolitical concerns over a North Korean missile test and possible U.S. intervention caused gold prices to jump this week.
- An improving global economy and lower Chinese production helped lift aluminum values. Read our article on global aluminum supply and demand mechanism to learn more about the commodity.
- Be sure to read our previous week’s update to familiarize yourself with ongoing trends in the commodities space.
Weekly Market Wrap-up
Energy – Oil prices settled lower after investors cashed in on previous gains, while natural gas dropped on warm weather predictions.
- Oil – Investors cashed in on recent oil gains, while rising U.S. shale production effectively ended a three-week rally, dropping prices down to $52.32 per barrel.
- Natural Gas – Natural gas prices drifted lower to $3.17/MMbtu on mild weather expectations and a lack of buying activity.
- Coal – Coal continues to face difficulties as renewable energy sources like solar and wind become more and more economically affordable in comparison.
Metals – Aluminum continues to climb – up 14.7% to $1,890.02 USD/t for 2017 so far – as the global economy builds momentum and demand rises.
- Precious Metals – Gold rose to $1,290 a troy ounce on further geopolitical concerns surrounding North Korean missile tests and possible U.S. intervention.
- Other – Copper fell to a three-month low to $5,573 a tonne as investors expressed nervousness amidst growing geopolitical tension.
Grains – Wheat prices are expected to be at their lowest level as low crop yields and dry conditions are expected to limit supply.
- Corn and Soybeans – Soybeans were up slightly for the week as competition with corn crops is expected to boost profitability.
Softs – Higher returns on cotton crops helped lift prices this week along with higher overseas demand with prices hovering around $76.81 cents per pound.
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 April 17) | 52-Week Price Change |
|---|---|---|---|---|
| U.S. Cotton | 3.04% | 05/17/17 | $77.19 | $60.27 - $79.46 |
| U.S. Coffee | 2.40% | 07/17/17 | $143.57 | $118.7 - $176 |
| Platinum | 1.43% | 07/17/17 | $985.90 | $889.55 - $1,199.45 |
Agricultural commodities were the best performers for the week, while platinum made a comeback as well. Higher returns on crops boosted demand for cotton and coffee, while an improving global economy helped lift platinum prices.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Considering the limited data for the year, all ETF’s were taken into consideration regardless of YTD gains.
Make sure to browse through all commodity ETFs on ETFdb.com to learn more about them.
Top Three ETF Winners This Week:
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of April 17) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| GEUR | Gartman Gold/Euro ETF | Gold/Euro | $17.36 | $12.94 | 3.27% | 11.55% | 0.77% |
| OUNZ | Van Eck Merk Gold Trust ETF | Gold | $130.37 | $12.73 | 2.91% | 11.76% | 0.40% |
| IAU | iShares Gold Trust ETF | Gold | $8,260.78 | $12.40 | 2.90% | 11.91% | 0.25% |
Gold ETF’s topped this week’s best commodity-based performers as investors’ jitters rose after a North Korean missile test. The added geopolitical risk following last week’s Syrian bombing led to a flight to safety for investors.
Get a complete list of gold ETFs on ETFdb.com.
Top Three ETF Losers This Week:
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of April 17) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CPER | United States Copper Index Fund | Copper | $14.14 | $16.75 | -3.51% | 2.45% | 0.65% |
| DBB | PowerShares DB Base Metals Fund | Metals | $270.04 | $15.82 | -2.94% | 6.03% | 0.75% |
| UNG | United States Natural Gas Fund | Natural Gas | $459.39 | $7.66 | -2.05% | -17.99% | 0.60% |
Copper and natural gas ETFs were the week’s worst commodity-based performers as geopolitical risks caused copper to fall and milder weather hurt natural gas values.
Click here to read more on how industrial metal ETFs performed this week on ETFdb.com.
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.
