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 August 9th to August 16th.
- A rise in U.S. oil production put pressure on crude oil prices, causing them to drop below $47 per barrel for the week.
- Copper hit a new 52-week high as demand for electric vehicles increased.
- Wheat futures fell precipitously this week after a report revealed ample global supply.
- Be sure to read our previous Roundup article to keep up with the trends in the commodities space.
Weekly Market Wrap-up
Energy – U.S. oil production was responsible for a drop in crude oil prices this week, while natural gas continued to face difficulties on bearish weather forecasts.
- Oil – Crude oil prices dropped to $46.78 a barrel to close out the week as U.S. oil production hit a two-year high.
- Natural Gas – Natural gas futures fell to $2.891 per million British thermal units on bearish weather and an expected rise in inventory data.
- Coal – U.S. thermal coal exports were up 58% from the first quarter compared to last year as a temporary drop in Chinese production helped lift demand.
Metals – Copper rose to a new 52-high as demand for electric vehicles keeps trending higher along with the need for more alternative energy fuels.
- Precious Metals – Gold trended slightly higher this week to $1,287.76 per ounce as investors mulled over the Fed and the future of interest rates.
- Other – Increased geopolitical concerns were largely responsible for the boost in silver values to $17.08 per ounce this week.
Grains – After beginning the year with big gains, the price of wheat dropped quickly after a USDA report revealed ample global supply, which sparked a sell-off.
- Corn and Soybeans – September soybean futures ticked higher to $9.23 after a lack of selling activity, but could be short lived as investors turned bearish on agriculture.
Softs – Cotton prices tumbled after estimates that U.S. production yields would hit record highs this week.
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 16) | 52-Week Price Change |
|---|---|---|---|---|
| Silver | 1.24% | September 17 | $17.08 | $15.15 - $20.33 |
| Copper | 1.16% | September 17 | $2.96 | $2.06 - $2.96 |
| Gold | 0.63% | December 17 | $1,287.76 | $1,124 - $1,354 |
Metals were the big winners in the commodity space this week as silver and gold rose on investors’ geopolitical concerns and wariness toward the Fed and interest rates. Copper gained on renewed demand for electric vehicles and batteries.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
You can use ETFdb.com’s Screener to see a complete list of commodity ETFs.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ millions) | NAV (as of August 16) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| UNG | United States Natural Gas Fund | Natural gas | $465.92 | $6.58 | 4.28% | -29.55% | 1.12% |
| UNL | United States 12 Month Natural Gas Fund | Natural gas | $9.46 | $9.85 | 2.28% | -15.74% | 0.90% |
| DBS | PowerShares DB Silver Fund | Silver | $21.12 | $25.65 | 1.75% | 3.18% | 0.75% |
This week’s best commodity-based ETF performers included natural gas ETFs that rose higher on technical buying activity. Silver also gained as investors expressed concerns regarding interest rate expectations and the ongoing geopolitical tensions.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ millions) | NAV (as of August 16) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| USAG | United States Agriculture Index Fund | Agriculture | $1.80 | $16.17 | -8.18% | -10.51% | 0.80% |
| TAGS | The Teucrium Agricultural Fund | Agriculture | $1.20 | $22.84 | -5.56% | -11.06% | 1.00% |
| WEAT | The Teucrium Wheat Fund | Wheat | $55.56 | $6.73 | -5.08% | -2.18% | 1.00% |
Agricultural commodities were among this week’s list of worst weekly performing commodity-based ETFs. Wheat was largely responsible for the broad decline as investors began a sell-off after a report showed that global supply was ample and there was little demand.
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.
