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 31st to February 7th.
- Crude oil prices dropped this week after a report that U.S. oil supplies rose higher.
- A spike in the U.S. dollar and bond yields led to lower prices of gold and copper this week.
- Dry weather conditions in the U.S. helped boost wheat prices this week.
- Be sure to check out our previous report to keep up with the latest events in the global commodities space.
Weekly Market Wrap-Up
Energy – Crude oil prices dropped this week on rising U.S. oil supplies, while natural gas futures fell on lower heating demands.
- Oil – Data showing a rise in domestic U.S. oil supplies took crude oil prices lower for the week to $61.79 a barrel.
- Natural Gas – Natural gas futures dropped to $2.726 per million British thermal units, near a six-week low on lower heating demand.
- Gasoline – Average US gasoline prices ticked higher this week to $2.61 per gallon, marking a sixth consecutive week of rises.
Metals – Copper prices slipped to $3.09 a pound this week against a rising U.S. dollar and higher bond yields.
- Precious Metals – Gold prices fell to a five-week low of $1,316.20 a troy ounce on a strengthening U.S. dollar and rise in bond yields.
- Other – Aluminum prices fell this week as market volatility affected trading but should march higher as demand picks up from the auto and aerospace sectors.
Grains – Dry weather concerns in the U.S. helped wheat prices climb to a six-month high of $4.63 a bushel.
- Corn and Soybeans – U.S. corn prices rose higher this week on increasing global demand and poor crop conditions in Argentina.
Softs – U.S. coffee prices jumped this week after a report forecasted a global coffee output deficit this season.
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 February 7) | 52-Week Price Change |
|---|---|---|---|---|
| U.S. Wheat | 2.16% | 03/18/18 | $461.25 | $400.25-$574.25 |
| U.S. Coffee | 1.50% | 03/18/18 | $123.22 | $113-$151 |
| U.S. Corn | 0.90% | 03/18/18 | $365.00 | $328.5-$394.5 |
This week’s top-performing commodities were all agriculture related with U.S. wheat taking the top spot as dry weather concerns boosted prices. U.S. coffee prices rose on reports of a global deficit this season, while U.S. corn gained on rising demand and poor crop conditions in Argentina.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Considering the limited data for the year, all ETF’s were taken into consideration regardless of YTD gains.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of February 7) | Return (weekly %) | Return (YTD %) | Expense ratio |
|---|---|---|---|---|---|---|---|
| CANE | Teucrium Sugar | Sugar | $7.36 | $9.25 | 2.98% | -5.42% | 1.00% |
| WEAT | Teucrium Wheat | Wheat | $67.69 | $6.44 | 1.90% | 7.33% | 1.00% |
| DBA | PowerShares DB Agriculture Fund | Agriculture | $667.50 | $18.96 | 0.69% | 1.07% | 0.85% |
This week’s top-performing commodity-based ETFs were all agricultural funds with sugar leading the pack as the top performer. A wheat fund gained on dry crop conditions in the U.S., while a broad agricultural fund rose as agricultural commodities outperformed for the week.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of February 7) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| UNG | United States Natural Gas Fund | Natural Gas | $381.84 | $22.80 | -9.09% | -2.23% | 1.12% |
| UGA | United States Gasoline Fund | Gasoline | $46.45 | $31.34 | -6.78% | -1.60% | 0.75% |
| UHN | United States Diesel Heating Oil Fund | Heating Oil | $7.48 | $18.27 | -6.26% | -5.53% | 0.75% |
This week’s worst-performing commodity-based ETF was a natural gas-based ETF as warmer weather lowered demand for natural gas. A gasoline fund ticked lower following behind natural gas prices, while a heating oil fund rounded out the list.
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.
