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 May 22 to May 29.
- Oil prices dropped below $50 a barrel on oversupply concerns before the summer session.
- Silver prices rose sharply for the week following gold’s earlier gains and concerns ahead of Chinese PMI data.
- Wheat prices rose on unfavorably wet crop conditions that could impact supply and demand.
- Be sure to read our previous edition to keep track of the market.
Weekly Market Wrap-up
Energy – Oil fell as a growing supply glut damped investor expectations ahead of summer while natural gas prices dropped on low trading volume.
- Oil – A supply glut in oil dragged prices down this week ahead of the summer session, with crude falling to $49.77 per barrel.
- Natural Gas – Natural gas prices for July delivery fell to $3.227 per million British thermal units on light trading volume heading into Memorial Day weekend.
- Coal – Coal plants continue to face shutdowns even in the heart of coal country, Kentucky, where a shift towards renewable energy is taking place.
Metals – Silver prices rose to $17.40 per ounce following gold’s rise on macroeconomic concerns.
- Precious Metals – Gold prices rose this week to $1,269.91 a troy ounce in anticipation of weak PMI data from China. Check out this guide on silver and gold investing.
- Other – The same expected PMI data from China that’s helping to lift gold is doing the opposite for copper, with LME values dropping to $5,633 a tonne.
Grains – Wheat prices rose higher for the week to $4.35 per bushel due to unfavorable wet conditions that could limit crop production.
- Corn and Soybeans – Soybeans fell to a 14-month low of $9.13 per bushel as investors and farmers favored corn more.
Softs – Cotton prices continued to trade high this week even as investors began to voice concerns that a cotton supply glut could cause prices to fall dramatically in the next 12 months.
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 to find the top three.
| Commodity | Weekly Gain (%) | Contract Expiration | Contract Price (as of May 29) | 52-Week Price Change |
|---|---|---|---|---|
| Silver | 1.76% | 07/17/17 | $17.44 | $15.817 - $21.207 |
| U.S. Wheat | 1.43% | 07/17/17 | $434.75 | $381.25 - $523.88 |
| Platinum | 1.28% | 07/17/17 | $955.95 | $889.55 - $1,199.45 |
Silver was the best-performing commodity for the week as investors fled to safe-haven assets while wheat jumped on unfavorable crop conditions. Platinum made this week’s list of top three weekly performers as well, following the lines of silver.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETNs, which behave differently than ETFs, as well as leveraged ETFs, which may not be suitable for some investors. Some ETFs that have less than one year on the market have been excluded due to lack of long-term data.
Check out the ETF screener on ETFdb.com to find out more about all commodity ETFs.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of May 29) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| PALL | ETFS Physical Palladium Shares ETF | Palladium | $187.09 | $75.80 | 4.25% | 16.24% | 0.60% |
| UHN | United States Diesel Heating Oil Fund | Heating Oil | $2.96 | $15.15 | 3.77% | -9.71% | 0.75% |
| DBS | PowerShares DB Silver Fund | Silver | $21.46 | $26.86 | 2.95% | 8.05% | 0.75% |
Mirroring this week’s commodity leader, a silver ETF was one of the best commodity-based ETF performers. Palladium rose on higher manufacturing bullishness as well.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of May 29) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CANE | The Teucrium Sugar Fund | Sugar | $8.72 | $10.60 | -5.19% | -18.46% | 1.00% |
| BNO | United States Brent Oil Fund | Brent Oil | $103.14 | $14.03 | -2.30% | -10.52% | 0.90% |
| USL | United States 12 Month Oil ETF | Oil | $109.35 | $17.86 | -2.19% | -12.45% | 0.79% |
Oil and sugar were among the week’s worst commodity-based ETF performers. Oil dropped on oversupply concerns surrounding the summer season while sugar took a hit from less bullish institutional fund activity.
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.
