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 June 12 to June 20.
- Oil dropped this week as news of rising inventories and higher production undercut the OPEC deal from earlier this year.
- Gold prices fell in the face of a rising U.S. dollar and higher interest rates, with more rate hikes expected before the end of the year.
- Wheat continued to soar this week as crop yields were greatly reduced because of a long-lasting drought during spring harvest.
- Be sure to read our previous week’s edition to keep track of the trends in the commodity market.
Weekly Market Wrap-up
Energy – Rising inventory data dragged oil prices lower this week, while natural gas suffered losses on unusually warmer weather.
- Oil – Crude oil dropped to a 7-month low of $43.23 a barrel as investors braced for a data report showing rising inventories.
- Natural Gas – Natural gas prices suffered its biggest single-day drop (in 6 months) this week before settling down to $2.889-per-million British thermal units.
- Coal – Coal continued to be a political platform for the Trump administration with the U.S. pulling out of the Paris Climate Agreement.
Metals – Copper held flat at $2.55 per ounce most of the weak in the face of a stronger dollar supported by the rise in interest rates.
- Precious Metals – Gold prices faced pressure from rising interest rates dropping to $1,244.19 a troy ounce this week.
- Other – Steel companies jumped higher assisted by an improving steel market and support from the U.S. government.
Grains – Spring wheat prices climbed again this week to $6.56 ¼ per bushel after poor rain reduced crop yields more than expected.
- Corn and Soybeans – Analysts reported that soybeans, while off to slow start for the year, are expected to climb higher and might touch $12 before the end of the year.
Softs – An oversupply of raw sugar is expected to cause prices to drop in the next few weeks.
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 June 20) | 52-Week Price Change |
|---|---|---|---|---|
| U.S. Wheat | 6.13% | 07/17/17 | $471.75 | $381.25 - $476.5 |
| Platinum | -0.41% | 07/17/17 | $924.20 | $889.55 - $1,199.45 |
| London Sugar | -0.81% | 07/17/17 | $402.60 | $395.6 - $619 |
It was a poor week for the commodities market with only U.S. wheat posting a profit. Drought conditions caused widespread crop failures for the spring harvest of wheat, sending prices higher. Wheat is expected to continue its strong performance in the coming months.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Be sure to check ETFdb.com’s screener to view a complete list of commodity-focused ETFs.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of June 20) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| WEAT | The Teucrium Wheat Fund | Wheat | $74.85 | $7.25 | 5.69% | 5.38% | 1.00% |
| SOYB | The Teucrium Soybean Fund | Soybeans | $11.72 | $17.99 | 0.90% | -5.81% | 1.00% |
| DBB | PowerShares DB Base Metals Fund | Broad Metals | $204.06 | $15.64 | 0.84% | 4.83% | 0.75% |
Unsurprisingly, a wheat ETF was the top commodity-based ETF performer for the week, mirroring the performance of the underlying commodity. Soybeans gained as well on higher future expectations later this year, while a broad-based metals fund ticked higher as investors sought diversity in a safe-haven asset.
Top Three ETF Losers This Week
| ETF Ticker | ETFName | Commodity Category | Assets ($ million) | NAV (as of June 20) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| PALL | ETFS Physical Palladium Shares ETF | Palladium | $209.95 | $82.15 | -4.42% | 25.98% | 0.60% |
| USO | United States Oil Fund | Oil | $2,978.68 | $9.12 | -4.20% | -22.18% | 0.77% |
| UNG | United States Natural Gas Fund | Natural Gas | $454.08 | $6.53 | -3.55% | -30.09% | 1.12% |
Palladium topped this week’s list of worst-performing commodity-based ETFs as investors took profits after several weeks of gains. Oil and natural gas ETFs dipped lower on increasing supply concerns and warmer than expected weather conditions, respectively.
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.
