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 20th to September 27th.
- Oil prices stagnated this week as mixed economic data and a surprise drop in inventories caused investors’ concern.
- A higher U.S. dollar meant further pressure on copper values, which have begun correcting downward after a long bull run.
- Sugar and cocoa prices fell this week as dry weather in Brazil continued to be an issue for crops.
- Be sure to check out our previous week’s edition to stay up to date with events in the commodity space
Weekly Market Wrap-up
Energy – Mixed economic data along with a reduction in U.S. inventories caused oil prices to fall this week, while natural gas outperformed as investors considered weather conditions.
- Oil – Crude oil prices slipped to $52.06 a barrel for the week after mixed economic data coupled with a drop in inventories spooked investors.
- Natural Gas – Natural gas prices continued to show strength this week following natural disasters in the U.S., with prices at $3.039 per million British thermal units.
- Coal – Difficulties in the coal industry could spark consolidation with other energy companies over the next year.
Metals – Copper contracts for December dropped to $2.916 per pound this week as poor demand combined with a higher dollar depressed prices.
- Precious Metals – Strength in the U.S. dollar was responsible for gold prices slipping to $1,288.46 a troy ounce.
- Other – A lack of steel production and demand is putting pressure on steel prices, which have fallen nearly 20% in the past two weeks.
Grains – U.S. wheat prices rebounded this week, touching $4.50, on increased global weather concerns.
- Corn and Soybeans – Crop yields could be at or near record highs this season causing corn prices to drop on the unexpected increase in supply.
- Softs – Dry weather in Brazil has pushed sugar and cocoa prices lower, while the strength of the dollar has created additional further headwinds.
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 27) | 52-Week Price Change |
|---|---|---|---|---|
| Natural Gas | 3.84% | 11/17/17 | $3.06 | $2.52 - $3.99 |
| Crude Oil WTI | 2.81% | 11/17/17 | $51.98 | $42.05 - $55.24 |
| U.S. Wheat | 1.77% | 12/17/17 | $460.75 | $390.25 - $574.25 |
Natural gas is this week’s best-performing commodity, holding onto the strength gained after the U.S. was hit by two devastating hurricanes. Crude oil rose as well on weather concerns and bullish buying activity, while U.S. wheat rebounded higher.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of September 27) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| USO | United States Oil Fund | Oil | $2,319.07 | $10.52 | 2.73% | -10.24% | 0.77% |
| BNO | United States Brent Oil Fund | Brent Oil | $100.71 | $15.34 | 2.61% | -2.17% | 0.90% |
| UHN | United States Diesel Heating Oil Fund | Heating Oil | $5.19 | $17.30 | 2.34% | 3.10% | 0.75% |
This week’s best-performing commodity-based ETFs were mostly invested in the energy sector with both crude and Brent oil ETFs making the top two spots. Bullish investment activity and supply disruptions from adverse weather conditions helped give oil a boost this week.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of September 27) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CANE | Teucrium Sugar Fund | Sugar | $6.57 | $9.33 | -4.70% | -28.23% | 1.00% |
| DBS | PowerShares DB Silver Fund | Silver | $20.73 | $25.83 | -3.04% | 3.90% | 0.75% |
| UNG | United States Natural Gas Fund | Natural Gas | $492.01 | $6.66 | -2.77% | -28.69% | 1.12% |
This week’s worst-performing commodity-based ETFs were a mixed bunch. A sugar ETF was the number one worst performer as dry weather in Brazil hurt crops, while silver lost ground on a stronger U.S. dollar. Natural gas dropped as well on profit-taking following several weeks of bullishness.
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.
