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 30th to September 6th.
- Both crude oil and brent oil prices jumped higher this week as Hurricane Harvey wreaked havoc on supply routes.
- Gold basically held flat, as President Trump announced he would be raising the debt ceiling.
- Cotton, orange juice, and coffee prices all rose this week, ahead of Hurricane Irma making landfall in Florida.
- Be sure to review our previous week’s article to remain up to date with trends in the commodity space.
Weekly Market Wrap-up
Energy – Crude and brent oil prices rose higher following supply chain issues in the aftermath of hurricane Harvey, while natural gas prices rose ahead of Hurricane Irma.
- Oil – Crude oil prices jumped to a 4-week high of $49.16 a barrel, due to supply disruptions stemming from hurricane Harvey.
- Natural Gas – Natural gas prices rose slightly to $2.997 per million British thermal units on the eve of a second hurricane, Irma.
- Coal – 250 jobs are expected to be added to the coal industry as a new Virginia plant is scheduled to go online later this year.
Metals – Copper prices continued to climb to another new 3-year high on improved Chinese economic data.
- Precious Metals – Gold prices held flat for the week at $1,338 a troy ounce after Trump agreed to raise the debt ceiling.
- Other – Aluminum values rose this week, extending its bull run on positive investor activity and improving global economic data.
Grains – After a small bump up last week, wheat moved lower this week as ample global supply dampened investors’ appetite.
- Corn and Soybeans – U.S. corn rose to a 2-week high, with December futures settling at $3.61 per bushel on slower-than-expected crop maturity.
Softs – Cotton prices rose ahead of Hurricane Irma making landfall and disrupting supply chains.
If you want to know which commodity is 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 September 6) | 52-Week Price Change |
---|---|---|---|---|
9.64% | 12/17/17 | $361.25 | $315 - $395 | |
6.96% | 10/17/17 | $49.16 | $42.05 - $55.24 | |
6.49% | 11/17/17 | $54.16 | $43.57 - $58.37 |
U.S. corn was this week’s best-performing commodity, with crops maturing slower than expected, while both crude and brent oil rose higher following supply disruptions in Houston from hurricane Harvey. Another hurricane is scheduled to make landfall in Florida this week, causing further bullish pressure on oil prices.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
You can use ETFdb.com’s Screener to see a complete list of commodity ETFs.
Top Three ETF Winners This Week
ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of September 6) | Return (weekly %) | Return (YTD %) | Expense Ratio |
---|---|---|---|---|---|---|---|
UHN | United States Diesel Heating Oil Fund | Heating oil | $4.90 | $16.35 | 5.31% | -2.56% | 0.75% |
USO | United States Oil Fund | Oil | $2,647.85 | $9.92 | 4.86% | -15.36% | 0.77% |
UGA | United States Gasoline Fund | Gasoline | $78.15 | $29.21 | 4.10% | -6.74% | 0.75% |
This week’s top-performing commodity-based ETFs were all a result of hurricane Harvey and the future threat of hurricane Irma. Gasoline, heating oil and crude oil all jumped higher as supply became tighter due to the destruction caused by flooding.
Top Three ETF Losers This Week
ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of September 6) | Return (weekly %) | Return (YTD %) | Expense Ratio |
---|---|---|---|---|---|---|---|
UNG | United States Natural Gas Fund | Natural Gas | $482.09 | $6.59 | -0.15% | -29.44% | 1.12% |
UNL | United States 12 Month Natural Gas Fund | Natural Gas | $9.45 | $9.94 | -0.10% | -14.97% | 0.90% |
USAG | United States Agricultural Index Fund | Agriculture | $1.79 | $16.17 | 0.00% | -10.51% | 0.80% |
This week’s worst-performing commodity-based ETFs were both natural gas-related, with investors unsure of how to price the commodity after hurricane Harvey and ahead of hurricane Irma. An agricultural ETF fell as well, as investors cooled in the face of a rising U.S. dollar.
We provide this report on a weekly basis. Be sure to check out our News section to remain updated on the latest happenings in the commodity space.