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 25th to November 1st.
- Brent and crude oil prices rose this week despite an increase in production numbers.
- Nickel prices leapt higher this week on expectations of increased future demand for electric vehicles.
- Wheat prices turned south again after ample supply data once again took center focus for commodity investors.
- Be sure to read our previous week’s report here to remain aware of the key events in the commodity space.
Weekly Market Wrap-up
Energy – Oil prices jumped this week as higher production failed to offset falling inventories, while natural gas prices dropped as investors looked ahead to the weekly storage data numbers.
- Oil – Crude oil rose to $54.25 a barrel, while Brent futures rose to $60.49 per barrel as inventories fell despite the rise in production.
- Natural Gas – Natural gas futures dipped to $2.855 per million British thermal units as investors looked forward to the weekly storage data.
- Coal – Coal miners refused retraining in hopes of Trump’s promised coal resurgence despite no positive fundamental news in the coal industry.
Metals – Copper prices rose to $3.1375 per pound on higher-than-expected Chinese manufacturing data.
- Precious Metals – The Fed’s decision to leave interest rates unchanged had no discernible effect on gold with prices around $1277.88 a troy ounce.
- Other – Nickel prices jumped to $13,030 a metric ton on expectations of higher demand for electric vehicles.
Grains – An ample wheat supply caused wheat prices to drop near a six-month low.
- Corn and Soybeans – January soybean futures climbed to $9.91¼ on bullish weather expectations in Brazil.
Softs – Sugar futures for March rose to $14.61 cents per lb this week after hitting a three-month high.
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 November 1) | 52-Week Price Change |
|---|---|---|---|---|
| Crude oil | 3.27% | 12/17/17 | $54.36 | $42.05 - $55.24 |
| London sugar | 2.41% | NA | $382.40 | $353 - $590 |
| Brent oil | 2.29% | 01/18/17 | $60.65 | $43.57 - $61.70 |
Both crude and Brent oil were among this week’s top three commodity performers as inventories fell despite a rise in production. London sugar also gained on bullish weather forecasts in Brazil.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of November 1) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| USAG | United States Agriculture Index Fund | Agriculture | $1.78 | $17.32 | 6.65% | -4.15% | 0.80% |
| PALL | ETFs Physical Palladium Shares | Palladium | $230.89 | $95.75 | 4.23% | 46.83% | 0.60% |
| USO | United States Oil Fund | Oil | $2,246.32 | $10.90 | 4.01% | -7.00% | 0.77% |
This week’s list of best-performing commodity-based ETFs were a mixed bunch with the leader being an agricultural fund as London sugar and soybeans closed higher. Palladium rose on electric car demand, while oil prices jumped on lower inventory data.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($ million) | NAV (as of November 1) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| UNG | United States Natural Gas Fund | Natural gas | $564.07 | $5.97 | -5.98% | -36.08% | 1.12% |
| UNL | United States 12 Month Natural Gas Fund | Natural gas | $8.18 | $9.56 | -4.54% | -18.22% | 0.90% |
| WEAT | Teucrium Wheat | Wheat | $62.51 | $6.18 | -3.59% | -10.17% | 1.00% |
Two natural gas ETFs topped this week’s list of worst weekly performing commodity-based ETFs as natural gas prices fell ahead of weekly storage data figures. Wheat prices also dropped to near a six-month low as ample global supply dampened investors’ appetite for the commodity.
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.
