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 24th to January 31st.
- Colder weather expectations for February helped natural gas prices continue to climb this week.
- Ahead of the Fed meeting regarding interest rates, gold prices held mostly flat for the week.
- Dry weather conditions turned out to be good news for both wheat and U.S. corn prices this week.
- Be sure to explore our previous article to keep in touch with events in the commodity space.
Weekly Market Wrap-up
Energy – Colder weather expectations boosted natural gas prices this week while oil prices held flat following a report showing an increase in stockpiles.
- Oil – Crude oil prices held relatively flat this week at $64.73 a barrel, up only slightly following a rise in stockpiles.
- Natural Gas – Cold weather expectations for February helped natural gas prices rise to $3.245 per million British thermal units.
- Gasoline – Average gasoline prices rose to $3.58 per gallon this week, hitting a four-month high.
Metals – Copper prices fell to $3.20 a pound this week following last week’s gains to nearly a four-year high.
- Precious Metals – Gold prices traded flat this week at $1,339.90 per troy ounce as investors looked ahead to the Fed’s decision on interest rates.
- Other – Palladium prices fell for a second consecutive week after hitting a record high earlier this year.
Grains – Wheat prices rose to a four-month high of $4.52-3/4 per bushel on worries that dry weather might have affected crops.
- Corn and Soybeans – Corn futures rose to $3.59-1/4 per bushel on dry conditions as well.
Softs – London sugar prices gained this week to 13.48 cents per pound on bullish speculation.
If you want to know what commodity is right for you, check out our Commodity Investing Database.
Weekly Movement Across Commodity Futures
| Commodity | Weekly gain (%) | Contract expiration | Contract price (as of January 31st) | 52 week price change |
|---|---|---|---|---|
| US Wheat | 4.39% | 03/18/18 | $451.50 | $400.25 - $574.25 |
| London Sugar | 3.22% | NA | $362.30 | $350.5 - $564.9 |
| US Corn | 1.47% | 03/18/18 | $361.50 | $328.5 - $394.5 |
This week’s top performing commodities were all agricultural with U.S. wheat taking the top spot as dry weather conditions are expected to hit crops. London sugar prices jumped on heavy speculative buying activity while U.S. corn prices rose on the same dry weather conditions that affected wheat crops.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF ticker | ETF name | Commodity category | Assets ($MM) | NAV (as of January 31st) | Return (weekly %) | Return (YTD %) | Expense ratio |
|---|---|---|---|---|---|---|---|
| WEAT | Teucrium Wheat | Wheat | $69.20 | $6.42 | 8.08% | 7.00% | 1.00% |
| CANE | Teucrium Sugar | Sugar | $7.36 | $9.22 | 3.48% | -5.73% | 1.00% |
| UNG | United States Natural Gas Fund | Natural Gas | $447.76 | $26.77 | 3.20% | 14.79% | 1.12% |
This week’s top commodity-based ETFs were largely agricultural ETFs with a wheat fund outperforming the most as dry weather impacted crops. A sugar fund gained on bullish speculation while natural gas gained on colder weather expectations for February.
Top Three ETF Losers This Week
| ETF ticker | ETF name | Commodity category | Assets ($MM) | NAV (as of January 31st) | Return (weekly %) | Return (YTD %) | Expense ratio |
|---|---|---|---|---|---|---|---|
| PALL | ETFs Physical Palladium Shares | Palladium | $253.24 | $100.74 | -3.56% | -0.80% | 0.60% |
| UGA | United States Gasoline Fund | Gasoline | $48.13 | $33.08 | -2.42% | 3.86% | 0.75% |
| BNO | United States Brent Oil Fund | Brent Oil | $98.39 | $18.70 | -1.94% | 3.31% | 0.90% |
The week’s worst performing commodity-based ETFs were somewhat mixed as Palladium lost the most just weeks after the commodity hit a record high. A gasoline fund fell on profit-taking activity while a Brent oil fund dropped on rising inventory data.
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.
