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 July 26th to August 1st.
- A rise in U.S. inventories and increased OPEC oil production caused oil prices to drop below $50 per barrel this week.
- Gold prices rose as the Fed made statements indicating that another interest rate hike might not occur this year.
- Wheat prices dropped for the first time in a month on concerns that global supply might be adequate despite failing spring crop yields.
- Be sure to check our previous article to keep track of the events in the commodity space.
Weekly Market Wrap-up
Energy – Oil took a hit this week as rising OPEC production and U.S. inventories dragged prices lower, while natural gas prices dropped to a 5-month low on negative weather forecasts.
- Oil – A surprise rise in oil inventories along with higher OPEC production caused crude oil prices to drop below $50 per barrel to $48.84.
- Natural Gas – Natural gas prices fell to a 5-month low of $2.766 per million British thermal units following a bearish weather outlook.
- Coal – A drop in nuclear power plant construction gave some a glimmer of hope for the coal industry this week.
Metals – Copper prices hit a 2-year high following upbeat economic data from China showing a boost in construction activity.
- Precious Metals – Gold prices bounced higher to $1,272.41 a troy ounce after the Fed announced that there might not be another rate hike before the end of the year.
- Other – Iron ore prices jumped to a 4-month high as increasing Chinese construction activity helped boost economic data.
Grains – Wheat futures fell to $4.76 a bushel after news of ample global supply offset failing spring crop production.
- Corn and Soybeans – August soybean futures dropped to $9.64 after suffering pressure from the weekly crop ratings.
Softs – U.S. coffee prices rose this week on technical buying activity and positive crop data.
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 August 1) | 52-Week Price Change |
|---|---|---|---|---|
| U.S. Coffee | 2.69% | Sept 17 | $138.43 | $113 - $176 |
| London Sugar | 2.60% | NA | $399.30 | $379 - $619 |
| Heating Oil | 2.58% | Sept 17 | $1.64 | $1.25 - $1.76 |
U.S. coffee topped this week’s list of best weekly performing commodities thanks to technical buying activity with London sugar following close behind on positive weather. Heating oil made the list as well on bearish weather predictions.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
You can use ETFdb.com’s Screener to see a complete list of commodity ETFs.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of August 1) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| UGA | United States Gasoline Fund | Gasoline | $63.22 | $27.18 | 5.80% | -13.22% | 0.75% |
| UHN | United States Diesel Heating Oil Fund | Diesel Heating Oil | $3.01 | $15.39 | 4.41% | -8.28% | 0.75% |
| CANE | The Teucrium Sugar Fund | Sugar | $8.01 | $10.35 | 4.28% | -20.42% | 1.00% |
Gasoline and heating oil were among the best-performing weekly commodity-based ETFs trading in line with the best-performing commodities for the week. A sugar ETF made the list as sugar demand rose on positive crop yields due to weather conditions.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of August 1) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| USAG | United States Agriculture Fund | Agriculture | $1.88 | $16.77 | -4.47% | -7.17% | 0.80% |
| UNG | United States Natural Gas Fund | Natural Gas | $432.69 | $6.33 | -3.80% | -32.23% | 1.12% |
| TAGS | The Teucrium Agricultural Fund | Agriculture | $1.27 | $24.29 | -2.80% | -5.41% | 1.00% |
The week’s list of worst-performing commodity-based ETFs featured two agricultural ETFs as coffee and sugar rises weren’t enough to offset losses from the majority of agricultural commodities. Natural gas suffered on bearish weather forecasts as the commodity sunk to a 5-month low this week.
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.
