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 October 4th to October 11th.
- Crude oil prices rose this week on expectations of an OPEC production cut extension.
- Copper values rose above $3 on positive Chinese economic data and demand expectations.
- Natural gas prices fell to a two-month low on a significant drop in demand and poor weather expectations.
- Be sure to check out our previous week’s edition to keep up with the latest events in the commodities space.
Weekly Market Wrap-up
Energy – Oil prices rose this week on expectations of a further OPEC production cut after a rise in U.S. oil inventories, while natural gas dipped to a two-month low.
- Oil – A rise in U.S. oil inventories is expected to trigger an OPEC production cut, which slightly lifted crude oil prices to $51.08 per barrel for the week.
- Natural Gas – A drop in demand was responsible for natural gas prices falling to a two-month low of $2.835 per million British thermal units.
- Coal – The EPA’s plan to end the Clean Power Plan was welcomed by the Trump administration and gave some life to the coal industry this week.
Metals – Copper prices rose back above the $3 level on expectations of further Chinese demand and positive economic growth.
- Precious Metals – Gold prices fluctuated this week ending at $1,287.76 a troy ounce amidst geopolitical uncertainty mixed with underperforming labor data and a weaker U.S. dollar.
- Other – A surplus steel capacity being created outside of China is threatening to hurt steel’s rise after falling earlier from a supply glut.
Grains – Wheat prices fell to $4.29 led mainly by technical selling activity this week.
- Corn and Soybeans – An expected rise in U.S. corn yields caused corn prices to dip this week to $3.46 per bushel.
Softs – Higher rainfall in India helped lift cotton prices with greater expected crop yields.
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 October 11) | 52-Week Price Change |
|---|---|---|---|---|
| Silver | 3.47% | 12/17/17 | $17.22 | $15.1 - $19.1 |
| Platinum | 2.13% | 01/18/17 | $937.80 | $889.55 - $1,047.7 |
| Copper | 2.01% | 12/17/17 | $3.09 | $2.08 - $3.16 |
Metals led this week’s list of best-performing commodities, with silver taking the top spot on increased geopolitical concerns and poor labor data. Platinum rose on buying for defensive purposes, while copper prices were lifted by positive Chinese demand expectations.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Considering the limited data for the year, all ETF’s were taken into consideration regardless of YTD gains.
You can use ETFdb.com’s Screener to see a complete list of commodity ETFs.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of October 11) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CPER | United States Copper Index Fund | Copper | $7.86 | $19.87 | 4.74% | 21.53% | 0.80% |
| PALL | ETFs Physical Palladium Shares | Palladium | $225.36 | $91.86 | 3.84% | 40.87% | 0.60% |
| SIVR | ETFs Physical Silver Shares | Silver | $345.83 | $16.80 | 3.70% | 7.76% | 0.30% |
This week’s list of best-performing commodity-based ETFs mirrored overall commodities with metals taking all three spots. Copper was the best-performing ETF, with prices rising on improved Chinese demand expectations. Palladium and silver prices were helped along by investors seeking asset protection.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of October 11) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| WEAT | Teucrium Wheat | Wheat | $63.20 | $6.38 | -1.69% | -7.27% | 1.00% |
| TAGS | Teucrium Agricultural Fund | Agriculture | $1.17 | $22.60 | -1.31% | -11.99% | 1.00% |
| UNG | United States Natural Gas Fund | Natural Gas | $578.55 | $6.31 | -1.25% | -32.44% | 1.12% |
Agriculture led this week’s list of worst-performing commodity-based ETFs, with wheat prices falling on technical selling activity. Natural gas also made the list as the underlying commodity dropped to a two-month low.
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.
