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 28th to April 4th.
- Crude oil prices continued to fall but bounced back slightly at the end of the week after a drop in U.S. supplies.
- Gold prices ticked higher this week following weakness in the U.S. dollar and renewed geopolitical risks.
- U.S. wheat prices surged higher this week after a report that crop conditions were in the worst state seen in 16 years.
- Be sure to read our previous edition to be in touch with events happening in the global commodities space.
Weekly Market Wrap-up
Energy –Crude oil prices fell this week on lower demand while natural gas prices ticked higher on bullish storage data expectations.
- Oil – Crude oil prices trended lower this week to $61.37 per barrel but pared losses after a drop on weekly U.S. inventory data.
- Natural Gas – Natural gas prices rose this week to $2.729 per million British thermal units as investors looked ahead to the upcoming storage supply data.
- Gasoline – The average price for a gallon of gasoline rose to $2.66 as the market burned through winter-grade fuel ahead of summer demand.
Metals –Copper prices for May delivery fell to $2.98 this week as investors feared an upcoming trade war with China was imminent.
- Precious Metals – Gold prices rose to $1,339.80 per troy ounce as the U.S. dollar’s strength wavered this week.
- Other –Palladium prices dropped this week as tensions with China put pressure on demand.
Grains – Wheat prices jumped to $4.63 per bushel this week after a report that crop conditions were the worst in 16 years.
- Corn and Soybeans – Unexpectedly low crop plantings for corn helped corn prices soar this week but could be threatened by new Chinese trade tariffs.
Softs – London sugar prices rose this week on bullish speculation but oversupply concerns could hurt values.
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 April 4th) | 52-Week Price Change |
|---|---|---|---|---|
| U.S. Wheat | 2.02% | 05/18/18 | $459.50 | $400.25 - $574.25 |
| London Sugar | 1.98% | NA | $354.70 | $345.1 - $489 |
| U.S. Corn | 1.87% | 05/18/18 | $381.50 | $328.5 - $394.5 |
This week’s best performing commodities were all agriculture-related with U.S. wheat posting the highest gains. A report revealing crop conditions were at the worst level seen in 16 years sparked demand. London sugar prices rose on bullish investment activity while U.S. corn jumped on low crop plantings.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long-term data.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of April 4th) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CORN | Teucrium Corn Fund | Corn | $69.86 | $18.00 | 3.78% | 7.32% | 1.00% |
| USAG | United States Agricultural Index Fund | Agriculture | $1.73 | $16.98 | 2.72% | 2.85% | 0.80% |
| CPER | United States Copper Index Fund | Copper | $11.72 | $19.50 | 2.44% | -7.38% | 0.80% |
This week’s list of best performing commodity-based ETFs were a mixed group with a corn fund topping the list as low crop plantings helped fuel demand. A broad agricultural fund rose on the back of rising corn, wheat and sugar prices while a copper fund rose following weakness in the U.S. dollar.
Top Three ETF Losers This Week
| ETF ticker | ETFname | Commoditycategory | Assets($MM) | NAV (as of April 4th) | Return (weekly %) | Return (YTD %) | Expense ratio |
|---|---|---|---|---|---|---|---|
| USO | United States Oil Fund | Oil | $1,804.70 | $12.81 | -2.06% | 6.66% | 0.77% |
| USL | United States 12 Month Oil Fund | Oil | $81.21 | $22.23 | -1.68% | 6.26% | 0.72% |
| UGA | United States Gasoline Fund | Gasoline | $45.71 | $31.55 | -1.59% | -0.94% | 0.75% |
This week’s list of worst performing commodity-based ETFs were mainly energy funds with two oil funds taking the top two spots. Falling global demand spurred selling activity while a gasoline fund fell on further selling pressure from oil.
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.
