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 16th to August 22nd.
- Oil prices traded flat for the week as higher summer demand wasn’t enough to offset fears of Libyan oil overproduction.
- Copper prices touched a new 3-year high as global demand for construction and manufacturing helped lift copper’s outlook.
- Wheat prices continued to fall this week, extending losses from last week as traders sold out of the commodity on news of ample global supply.
- Be sure to check the previous week’s report to keep track of trends in the commodity market.
Weekly Market Wrap-up
Energy – Oil prices stagnated this week as concerns of Libyan oil overproduction offset summer demand for oil, while natural gas prices lifted on positive weather predictions.
- Oil – Crude oil prices didn’t move much this week, ending at $47.65 a barrel, as Libyan overproduction offset summer demand for oil.
- Natural Gas – Natural gas prices rose to a 1-week high of $2.998 per million British thermal units on bullish weather forecasts.
- Coal – Trump’s campaign in favor of the coal industry, the administration shut down an emergency order for a two-year moratorium on coal plant closures this week.
Metals – Copper prices hit a 3-year high above $3 a pound on stronger global demand for construction and manufacturing.
- Precious Metals – Gold prices rose to $1,292.22 a troy ounce this week ahead of a meeting between the Federal Reserve and European Central Bank to discuss monetary policy and interest rates.
- Other – LME aluminum prices jumped over $2,000 per metric ton after China instituted a fiscal stimulus plan to keep the economy growing.
Grains – The wheat sell-off that started last week due to concerns that there was ample global supply continued into this week with prices dropping to their lowest levels since April.
- Corn and Soybeans – Yields on corn and soybean crops could be low enough to trigger higher prices according to a report released earlier this week.
Softs – Sugar prices climbed again this week as demand for ethanol production picked up, but prices could fall if the rise is too high too quickly.
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 22) | 52-Week Price Change |
|---|---|---|---|---|
| London Sugar | 3.43% | N/A | $373.40 | $360 - $619 |
| Brent Oil | 2.82% | 10/17/17 | $51.73 | $43.57 - $58.37 |
| U.S. Cotton | 2.26% | 12/17/17 | $68.35 | $65.42 - $87.18 |
This week’s top weekly performing commodity was London Sugar, driven higher by demand for ethanol production. Brent oil and cotton prices gained as well with oil ticking slightly higher on summer demand and cotton on technical buying activity.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
You can use ETFdb.com’s Screener to see a complete list of commodity ETFs.
Top Three ETF Winners This Week
| ETF Ticker | ETF name | Commodity category | Assets ($ million) | NAV (as of August 22) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| PALL | ETFs Physical Palladium Shares | Palladium | $218.12 | $88.76 | 4.46% | 36.11% | 0.60% |
| DBB | PowerShares DB Base Metals Fund | Metals | $296.10 | $18.06 | 3.56% | 21.05% | 0.75% |
| CPER | United States Copper Index Fund | Copper | $8.67 | $19.30 | 3.54% | 18.04% | 0.80% |
This week saw metal ETFs as the best weekly performing commodity-based ETFs with palladium and copper leading the way. Higher global demand for construction and manufacturing helped boost copper prices, while palladium gained on investor-hedging activity ahead of the Fed meeting.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of August 22) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| WEAT | The Teucrium Wheat Fund | Wheat | $58.27 | $6.42 | -4.61% | -6.69% | 1.00% |
| CORN | The Teucrium Corn Fund | Corn | $64.41 | $17.78 | -2.09% | -4.97% | 1.00% |
| DBA | PowerShares DB Agricultural Fund | Agriculture | $683.11 | $18.58 | -1.90% | -6.96% | 0.85% |
This week’s worst performing commodity-based ETFs were all agricultural related, with wheat continuing the sell-off from last week. Corn fell slightly as well, with soybeans taking a more favored position with investors.
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.
