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 September 6th to September 13th.
- Two hurricanes hitting the U.S. disrupted supply chains, lifting demand and prices for oil and natural gas this week.
- After a speculative run on copper, prices finally fell as weak economic data emerged from China.
- U.S. corn prices rose this week as global demand for ethanol products grew.
- Be sure to check out our previous article to keep track of the trends in the commodities space.
Weekly Market Wrap-Up
Energy – In the aftermath of two major hurricanes, crude oil prices rose to hold at near $50 per barrel, while natural gas futures jumped on higher demand and supply troubles.
- Oil – Crude oil prices ticked slightly higher in the aftermath of Hurricane Irma, to $49.30 a barrel, held mainly by higher expected demand.
- Natural Gas – Natural gas prices rose to a two-week high of $3.056 per million British thermal units as major hurricanes boosted demand.
- Coal – A new program in the Appalachian region is aimed at providing new job skills for coal workers who are expected to be out of work.
Metals – After weeks of speculation and a poor economic report coming out of China, which is responsible for close to half of global demand, copper prices finally hit a slump dropping to $2.97 a pound.
- Precious Metals – A higher U.S. dollar put pressure on gold prices, which held at $1,328.56 a troy ounce for the week but could trend lower as the week goes on.
- Other – Production of aluminum dropped again this week on energy cost concerns, despite a continued rise in aluminum prices.
Grains – A USDA supply and demand report helped stabilize wheat prices this week as future demand picks up.
- Corn and Soybeans – U.S. corn prices were up this week as demand for ethanol products picked up despite a report that yields in crops could be greater than expected.
Softs – Cotton prices retreated following the hurricane threat, which did not destroy bumper crops as expected.
If you want to know what 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 13) | 52-Week Price Change |
|---|---|---|---|---|
| U.S. Coffee | 8.73% | 12/17/17 | $137.65 | $113 - $176 |
| Natural Gas | 1.93% | 10/17/17 | $3.06 | $2.52 - $3.99 |
| U.S. Corn | 1.66% | 12/17/17 | $352.75 | $317.5 - $394.5 |
Hurricane Irma slamming into Florida was responsible for this week’s top weekly performing commodity, U.S. coffee, which gained more than 8%. Natural gas and U.S. corn were among the week’s best-performing commodities as well, driven by more hurricane-related concerns than anything else.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of September 13) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| BNO | United States Brent Oil Fund | Brent Oil | $97.53 | $14.46 | 2.26% | -7.78% | 0.90% |
| DBE | PowerShare DB Energy Fund | Broad Energy | $117.23 | $12.48 | 1.22% | -9.63% | 0.75% |
| UNL | United States 12 Month Natural Gas Fund | Natural Gas | $9.57 | $10.06 | 1.21% | -13.94% | 0.90% |
Oil and natural gas ETFs led this week’s list of best weekly performing commodity-based ETFs. Two hurricanes hitting Texas and Florida hurt supply lines for energy, helping lift prices and demand. Higher-than-expected demand for oil was also responsible for the gains this week.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets($ million) | NAV (as of September 13) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CPER | United States Copper Index Fund | Copper | $8.77 | $19.46 | -2.89% | 19.02% | 0.80% |
| PPLT | ETFs Physical Platinum Shares | Platinum | $550.49 | $94.48 | -1.82% | 9.34% | 0.60% |
| CORN | Teucrium Corn Fund | Corn | $67.46 | $17.40 | -1.75% | -7.00% | 1.00% |
A copper ETF led this week’s list of worst weekly performing commodity-based ETFs, as speculation in copper investments went bust. Another metal ETF, platinum, mostly fell against a stronger dollar, while corn fell on profit-taking.
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.
