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 March 1st to March 7th.
- Higher winter heating demand caused natural gas prices to jump to a four-week high.
- Gold prices dipped this week on a better-than-expected jobs report and a drop in the value of the U.S. dollar.
- Wheat prices rebounded strongly this week as investors speculated on further drought conditions.
- Be sure to read our previous edition to remain in touch with the events happening in the global commodities space.
Weekly Market Wrap-up
Energy – Oil prices held mostly steady this week dropping only slightly after a second consecutive weekly report of stockpile gains, while natural gas futures rose on higher winter demand.
- Oil – Crude oil prices dipped slightly lower this week to $61.15 a barrel after the second consecutive week of stockpile increases.
- Natural Gas – Natural gas futures jumped to a four-week high of $2.784 per million British thermal units on higher winter heating demand.
- Gasoline – The average price for a gallon of gas dropped to $2.53 this week, but it could be headed higher as summer approaches.
Metals – Copper prices ticked slightly higher this week to $3.13 on the back of a weaker U.S. dollar.
- Precious Metals – Gold prices fell again this week to $1,325.30 a troy ounce on stronger-than-expected jobs data and reports that Trump’s tariff may exempt Canada and Mexico.
- Other – Silver prices gained this week to $16.54 on a weaker U.S. dollar and could be poised to outpace gold this year.
Grains – Wheat prices soared this week on a prolonged drought combined with increased bullish speculation.
- Corn and Soybeans – Both corn and soybeans are in the midst of a bull rally as positive weather expectations and speculation helped lift prices.
Softs – Cotton prices rose this week after a report showed that demand is rising, while production is falling.
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 March 7th) | 52-Week Price Change |
|---|---|---|---|---|
| Natural Gas | 4.39% | 04/18/18 | $2.78 | $2.53 - $3.66 |
| U.S. Corn | 3.27% | 05/18/18 | $386.75 | $328.50 - $394.50 |
| London Sugar | 1.38% | NA | $366.30 | $349.50 - $527.40 |
This week’s top-performing commodity was natural gas helped along by higher winter heating demands. U.S. corn prices rose on bullish speculation and a positive weather outlook, while London sugar prices gained on technical trading activity.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of March 7th) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| WEAT | Teucrium Wheat | Wheat | $72.65 | $6.86 | 5.38% | 14.33% | 1.00% |
| CANE | Teucrium Sugar | Sugar | $7.59 | $8.96 | 4.67% | -8.38% | 1.00% |
| TAGS | Teucrium Agricultural Fund | Agriculture | $1.19 | $23.96 | 4.26% | 8.42% | 1.00% |
This week’s best-performing commodity-based ETFs were all agricultural funds with wheat leading the way on drought conditions and poor crop outlooks. A sugar fund gained on technical trading activity, while a broad agricultural fund gained as agricultural commodities rose in general this week.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of March 7th) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| PALL | ETFS Physical Palladium Shares | Palladium | $233.98 | $93.85 | -5.15% | -7.58% | 0.60% |
| UHN | United States Diesel Heating Oil Fund | Heating Oil | $7.18 | $17.93 | -3.45% | -7.29% | 0.75% |
| UGA | United States Gasoline Fund | Gasoline | $44.96 | $30.96 | -2.70% | -2.79% | 0.75% |
This week’s list of worst-performing commodity-based ETFs were somewhat mixed with palladium falling the most as investor speculation on the auto industry cooled off. A diesel heating oil fund fell on profit-taking activity, while a gasoline fund fell as prices for a gallon of gas dropped.
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.
