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 November 1st to November 8th.
- Crude oil and Brent oil soared higher this week but could relapse with the data of U.S. oil inventories rising.
- A drop in the value of the U.S. dollar helped gold prices climb to a three-week high.
- Higher demand for ethanol and positive technical buying activity helped London Sugar prices gain more than 5% for the week.
- Be sure to read our previous edition to remain aware of the trends in the commodities space.
Weekly Market Wrap-up
Energy – Oil prices jumped higher for the week but showed signs of a pullback as U.S. inventories signaled a rise, while natural gas prices hit a seven-week high on higher demand.
- Oil – An EIA report showing a surprise increase in U.S. oil supplies slowed oil’s rise this week with crude oil ending the week at $56.81 a barrel.
- Natural Gas – Natural gas prices rebounded to a seven-week high of $3.148 per million British thermal units on higher demand before dropping slightly to close out the week.
- Coal – The political winds shifted against Trump and coal this week with news that coal production fell below 2016 levels and wind farms are becoming cheaper to operate than coal plants.
Metals – Copper prices rose to $3.1115 a pound despite a drop in Chinese imports.
- Precious Metals – A falling U.S. dollar helped lift gold prices to a three-week high of $1283.85 a troy ounce.
- Other – Nickel prices slipped this week following large speculative buying based on higher demand for electric vehicles.
Grains – Wheat prices rose slightly to $4.27-1/2 a bushel as value investors hopped into the market after a sell-off in the commodity.
- Corn and Soybeans – Corn futures rose to $3.48 with soybean futures climbing to $9.98½ as the dollar slipped this week.
Softs – Cocoa and London Sugar rose this week on bullish technical buying activity and higher demand for ethanol products.
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 ofNovember 8) | 52-Week Price Change |
|---|---|---|---|---|
| Natural Gas | 7.77% | 12/17/17 | $3.16 | $2.52 - $3.99 |
| London Sugar | 5.04% | N/A | $393.70 | $353 - $590 |
| Brent Oil | 4.97% | 01/18/17 | $63.65 | $43.57 - $64.65 |
Natural gas led this week’s list of best-performing commodities as higher demand sparked investor interest. London Sugar rose on bullish buying activity and higher ethanol demand, while Brent oil climbed on positive shale oil numbers.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of November 8) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| UNG | United States Natural Gas Fund | Natural Gas | $604.23 | $6.47 | 8.38% | -30.73% | 1.12% |
| USL | United States 12 Month Oil Fund | Oil | $101.16 | $19.98 | 5.27% | -2.06% | 0.72% |
| UNL | United States 12 Month Natural Gas Fund | Natural Gas | $8.54 | $10.04 | 5.02% | -14.11% | 0.90% |
This week’s list of best commodity-based ETF performers were all natural gas and oil funds. Two natural gas funds took the number one and three spots as higher demand drove buying activity, while oil rose on positive shale oil data.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of November 8) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| DBB | PowerShares DB Base Metals Fund | Metals | $299.47 | $18.48 | -2.25% | 23.83% | 0.75% |
| SIVR | ETFS Physical Silver Shares | Silver | $348.95 | $16.59 | -0.84% | 6.41% | 0.30% |
| CPER | United States Copper Index Fund | Copper | $7.94 | $19.92 | -0.80% | 21.83% | 0.80% |
The week’s list of worst-performing commodity-based ETFs was led by a base metals fund as nickel and iron ore prices dropped. A silver fund and copper fund also found their way onto the list as investors paused on the outcome of a Fed meeting.
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.
