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 14th to March 21st.
- Crude oil and Brent oil prices soared this week as unexpected inventory data helped spark bullish speculation.
- Copper prices hit a three-month low as investors looked ahead to the Fed decision regarding the future of interest rates.
- Wheat prices sank this week as rains inundated drought regions but did end the week trending upward.
- Be sure to check our previous edition to be in touch with the events happening in the global commodity space.
Weekly Market Wrap-up
Energy – Oil prices spiked this week on an unexpected drop in supplies while natural gas prices trended down on lower demand.
- Oil – An unexpected drop in oil stockpiles helped lift crude oil prices to $64.69 per barrel this week while Brent futures climbed to $68.86 per barrel.
- Natural Gas – Natural gas futures fell to $2.663 per million British thermal units this week as investors focused on the upcoming storage data.
- Gasoline – The average price for a gallon of gas in the U.S. rose slightly this week to $2.58 on higher demand.
Metals – Copper prices hit a three-month low this week ahead of the Fed’s interest rate meeting as investors feared that the Fed will raise rates again.
- Precious Metals – Gold prices rose slightly this week to $1,322.70 per troy ounce on the back of a weaker U.S. dollar.
- Other – Nickel prices fell to $6.13 per pound this week on profit-taking activity following gains from earlier this month.
Grains – After dropping to a seven-week low on much-needed rain in drought regions, wheat prices jumped higher to end the week.
- Corn and Soybeans – May soybean futures rose to $10.34 this week on bullish speculation and increased export data.
Softs – Coffee prices fell to $1.17 per pound this week on expectations of a record-breaking crop yield this year in Brazil.
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 March 21st) | 52-Week Price Change |
|---|---|---|---|---|
| Crude Oil WTI | 6.18% | 05/18/18 | $64.69 | $42.05 - $66.66 |
| Brent Oil | 6.16% | 05/18/18 | $68.86 | $44.35 - $71.28 |
| Heating Oil | 5.72% | 04/18/18 | $1.99 | $1.35 - $2.14 |
This week’s best performing commodities were all oil-related with crude oil and Brent oil taking the top two positions. A drop in inventory data helped lift prices while heating oil futures rose alongside them.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of March 21st) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| USO | United States Oil Fund | Oil | $1,829.24 | $12.81 | 4.66% | 6.66% | 0.77% |
| UGA | United States Gasoline Fund | Gasoline | $45.72 | $31.54 | 4.52% | -0.97% | 0.75% |
| BNO | United States Brent Oil Fund | Brent oil | $90.74 | $18.49 | 4.17% | 2.15% | 0.90% |
This week’s list of best performing commodity-based ETFs were similar to the best performing commodities in general for the week with oil funds taking center stage. Two oil funds and a gasoline fund were the best gainers as lower inventory data and higher demand helped fuel speculation.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of March 21st) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| WEAT | Teucrium Wheat Fund | Wheat | $64.89 | $6.19 | -6.78% | 3.17% | 1.00% |
| UNG | United States Natural Gas Fund | Natural gas | $365.40 | $22.29 | -4.09% | -4.42% | 1.12% |
| CORN | Teucrium Corn Fund | Corn | $70.40 | $17.36 | -3.82% | 3.54% | 1.00% |
This week’s list of worst performing commodity-based ETFs were primarily agricultural with a wheat fund in the number one spot as rain in drought regions hurt demand. A natural gas fund tumbled on lower demand as well, while a corn fund sank on profit-taking activity.
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.
