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 January 11th to January 17th.
- Crude oil prices held flat this week as investors looked ahead to the inventory data and speculated on the future of OPEC production cuts.
- Gold prices rose to a four-month high as the U.S. dollar dropped this week.
- Copper prices pulled back this week to a six-week low as bullish speculation began to wane.
- Be sure to read our previous edition to be in touch with the commodity-related events globally.
Weekly Market Wrap-up
Energy – Crude oil prices held steady as investors looked ahead to upcoming inventory data and the future of OPEC production cuts, while natural gas prices rose on colder weather expectations.
- Oil – Crude oil prices basically held flat this week, settling at $63.97 a barrel as investors considered upcoming inventory data and the future of OPEC-led production cuts.
- Natural Gas – Natural gas futures surged ahead to $3.244 per million British thermal units as investors expect increased demand due to cold weather next week.
- Gasoline – The national average for gasoline prices rose to $2.53 a gallon, keeping pace with rising oil prices.
Metals – Copper prices fell to $7,054 a ton, a six-week low, as investors began to pull back from bullish speculation.
- Precious Metals – A drop in the value if the U.S. dollar helped gold prices rise to a four-month high of $1,335.50 a troy ounce.
- Other – Iron ore and steel prices fell this week on slower Chinese demand due to production curbs designed to combat smog.
Grains – Wheat prices hit a one-month low on larger-than-expected U.S. crop plantings.
- Corn and Soybeans – Both corn and soybeans gained ground this week, as wheat fell and global demand for ethanol remained healthy.
Softs – Cotton prices rose to a seven-month high of $82.65 cents per pound on strong U.S. export data.
If you are wondering which commodity might be 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 January 17) | 52-Week Price Change |
|---|---|---|---|---|
| Natural Gas | 5.29% | 02/18/18 | $3.24 | $2.52 - $3.49 |
| Platinum | 1.45% | 04/18/18 | $1,001.20 | $872.6 - $1,047.7 |
| U.S. Corn | 1.08% | 03/18/18 | $352.25 | $328.5 - $394.5 |
Natural gas topped this week’s list of best-performing commodities as investors expect colder weather in the coming weeks. Platinum’s price also rose on higher automotive demand and a falling U.S. dollar, while corn prices rose to fill in the gaps left by wheat prices falling.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF Ticker | ETFName | CommodityCategory | Assets($MM) | NAV (as of January 17) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| UNG | United States Natural Gas Fund | Natural Gas | $469.72 | $24.60 | 5.58% | 5.49% | 1.12% |
| PPLT | ETFS Physical Platinum Shares | Platinum | $585.49 | $95.22 | 3.39% | 7.63% | 0.60% |
| DGL | PowerShares DB Gold Fund | Gold | $144.27 | $42.52 | 1.99% | 2.80% | 0.75% |
This week’s list of best-performing commodity-based ETFs followed their underlying commodities performance relatively closely. A natural gas fund took the number one spot as investors looked ahead to colder weather, while platinum gained on increased automotive demand. A gold ETF rounded out the list as the U.S. dollar sank this week.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of January 17) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CANE | Teucrium Sugar | Sugar | $6.16 | $9.12 | -6.17% | -6.75% | 1.00% |
| WEAT | Teucrium Wheat | Wheat | $61.71 | $5.88 | -2.97% | -2.00% | 1.00% |
| TAGS | Teucrium Agricultural Fund | Agriculture | $1.11 | $21.95 | -2.31% | -0.68% | 1.00% |
Agricultural ETFs found themselves in this week’s list of worst-performing commodity-based ETFs as wheat prices dropped and a general lack of bullish sentiment dragged down prices. Sugar and wheat were the biggest detractors on low demand and high supply.
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.
