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 April 4th to April 11th.
- Crude and Brent oil prices surged higher this week, led by increasing geopolitical risks involving Russia and the U.S.
- Gold prices ticked higher this week on renewed geopolitical concerns and a drop in the value of the U.S. dollar.
- Soybean prices dropped this week following a slew of technical trading activity.
- Be sure to read our previous edition to track the events happening in the global commodities space.
Weekly Market Wrap-up
Energy – Oil prices surged ahead this week on renewed geopolitical tensions while natural gas prices sank to a two-week low.
- Oil – Geopolitical tensions helped crude oil prices rise to $66.82 per barrel while Brent oil reached $72.15 per barrel.
- Natural Gas – Natural gas prices slipped to a two-week low of $2.621 per million British thermal units on building storage supply data.
- Gasoline – The average price for a gallon of gas held relatively flat this week at $2.66, the highest price of the year so far.
Metals – Aluminum prices rose to $2,277.50 per metric ton, the highest since 2012 on sanctions imposed by the U.S. on the Russian giant, United Co. Rusal.
- Precious Metals – Gold prices jumped to $1,362.10 per troy ounce on building U.S.-Russia tensions, sending investors fleeing to safe haven assets.
- Other – Copper prices rose to $3.1285 per pound this week as the U.S. dollar fell and geopolitical risks increased.
Grains – Colder-than-expected weather in wheat regions helped lift prices this week.
- Corn and Soybeans – Soybean prices ticked lower this week, led by technical selling activity.
Softs – A global sugar surplus sent London sugar prices lower for the week.
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 11th) | 52-Week Price Change |
|---|---|---|---|---|
| U.S. Wheat | 5.90% | 05/18/18 | $484.50 | $400.25 - $574.25 |
| Heating Oil | 5.81% | 05/18/18 | $2.09 | $1.35 - $2.14 |
| Brent Oil | 5.73% | 06/18/18 | $71.93 | $44.35 - $71.93 |
This week’s top performing commodity was U.S. wheat as colder-than-expected weather in grain regions drove up demand. Heating oil prices rose along with Brent oil on renewed geopolitical risks in the markets.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of April 11th) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| WEAT | Teucrium Wheat | Wheat | $70.25 | $6.67 | 6.89% | 11.17% | 1.00% |
| BNO | United States Brent Oil Fund | Brent oil | $92.14 | $19.64 | 4.47% | 8.51% | 0.90% |
| DBB | PowerShares DB Base Metals Fund | Metals | $339.78 | $18.96 | 3.83% | -2.32% | 0.75% |
This week’s list of best performing commodity-based ETFs were a mixed bunch with a wheat fund taking the top spot as colder-than-expected weather damaged wheat crops. A Brent oil fund rose along with the rise in oil prices while a broad metals fund rose on higher geopolitical risks.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of April 11th) | Return (Weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CANE | Teucrium Sugar | Sugar | $9.07 | $8.05 | -3.71% | -17.69% | 1.00% |
| UNL | United States 12 Month Natural Gas Fund | Natural gas | $6.82 | $9.06 | -1.74% | -1.31% | 0.90% |
| USAG | United States Agriculture Index Fund | Agriculture | $1.75 | $16.71 | -1.59% | 1.21% | 0.80% |
This week’s list of worst performing commodity-based ETFs was somewhat mixed with a sugar fund leading the way on technical selling activity. A natural gas fund dropped on lower demand while a broad agricultural fund fell as well.
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.
