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 20th to June 27th.
- Rising U.S. oil inventories sent oil prices lower for the week while natural gas futures saw a bump thanks to bullish weather predictions for the summer.
- Despite a weakness in the U.S. dollar, metal commodities were mostly unchanged for the week as investors considered the Fed action regarding future interest rate hikes.
- Poor crop conditions across the globe sent most agricultural commodities higher with wheat, sugar and coffee leading the way.
- Be sure to check our previous week’s edition to keep track of the commodity space.
Weekly Market Wrap-up
Energy – Oil prices fell again this week after a report showed rising U.S. oil inventories while natural gas prices spiked on bullish weather forecasts.
- Oil – Rising U.S. oil inventory gains dragged down Brent and crude oil prices to $46.85 and $44.09 per barrel.
- Natural Gas – Natural gas futures rose to a 1-week high of $3.058 per million British thermal units on bullish weather forecasts.
- Coal – A report revealed that coal could be making a comeback thanks to increased mining activity in the U.S., China and India.
Metals – Copper prices cooled off to $2.67 per ounce after U.S. durable goods data missed forecasts.
- Precious Metals – Gold ticked only slightly higher to $1,250.68 a troy ounce despite a fall in the value of the U.S. dollar.
- Other – After starting off the year with impressive gains on news that China would be cutting back aluminum production, the metal hasn’t changed much in the past week.
Grains – Hot weather in the U.S. and Europe have hurt wheat crop production, with a recent report showing that the global wheat supply glut could be over.
- Corn and Soybeans – November soybean futures ended the week higher at $9.21 per bushel on weak crop conditions.
Softs – Coffee and sugar prices jumped this week on the back of a weaker U.S. dollar.
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 27) | 52-Week Price Change |
|---|---|---|---|---|
| Natural Gas | 5.84% | 08/17/17 | $3.06 | $2.522 - $3.994 |
| U.S. Coffee | 5.34% | 09/17/17 | $125.72 | $113 - $176 |
| Brent Oil | 4.42% | 09/17/17 | $46.81 | $41.51 - $58.37 |
Natural gas was the best-performing commodity for the week after a bullish weather forecast, while U.S. coffee gained on a weaker U.S. dollar. Brent oil ticked higher, although rising inventories will likely curb future gains.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of June 27) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| UNG | United States Natural Gas Fund | Natural gas | $448.32 | $6.84 | 4.75% | -26.77% | 1.12% |
| DBB | PowerShares DB Base Metals Fund | Metals | $206.86 | $16.12 | 3.47% | 8.04% | 0.75% |
| UNL | United States 12 Month Natural Gas Fund | Natural gas | $9.38 | $10.08 | 3.38% | -13.77% | 0.90% |
Unsurprisingly, two natural gas ETFs topped this week’s list of best-performing commodity-based ETFs thanks to upbeat weather predictions. A broad-based metal ETF also found its way onto the list for the week thanks to a weak U.S. dollar and investor demand for safe haven assets.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of June 27) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CANE | The Teucrium Sugar Fund | Sugar | $7.65 | $9.11 | -5.40% | -29.92% | 1.00% |
| WEAT | The Teucrium Wheat Fund | Wheat | $71.71 | $7.11 | -3.27% | 3.34% | 1.00% |
| SOYB | The Teucrium Soybean Fund | Soybeans | $11.28 | $17.43 | -2.46% | -8.74% | 1.00% |
All three of the week’s worst-performing commodity-based ETFs were agriculture related, likely stemming from profit-taking since they have been some of the best performers over the past month. As crop conditions continue to deteriorate, these commodity-based ETFs should rebound.
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.
