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 week ranging from July 25th to August 1st.
- Crude oil prices fell this week after an unexpected rise in oil inventories.
- Gold prices plummeted this week as trade war fears and a strengthening U.S. dollar damped investors’ interest.
- U.S. wheat prices rallied again this week on dry weather conditions and fears over tightening global supply.
- Be sure to check out our previous edition so that you are aware of the changing trends in the commodity space.
Weekly Market Wrap-up
Energy – An unexpected rise in oil supplies pulled down crude oil prices this week while natural gas prices traded flat as warmer weather expectations offset weak U.S. manufacturing data.
- Oil – Crude oil prices dropped to $67.66 per barrel this week following an unexpected increase in inventories.
- Natural Gas – Natural gas prices treaded water this week at $2.74 per million British thermal units as weak U.S. manufacturing data offset warmer weather expectations.
- Gasoline – A jump in gasoline demand helped gas prices climb to $2.87 per gallon, nearing a record high.
Metals – Copper prices dropped to $2.75 as escalating trade war concerns and a stronger dollar hurt broad metals.
- Precious Metals – Gold prices fell again this week to $1,218.30 per troy ounce as a stronger U.S. dollar and concerns ahead of the upcoming Fed meeting spooked investors.
- Other – Palladium ended the week at around $915 per ounce but could hit as high as $950 by December on higher demand.
Grains – A tightening wheat supply and dry weather conditions helped wheat prices surge higher to $5.43-1/2 per bushel.
- Corn and Soybeans – Trade war concerns capped this week’s rebound in corn and soybean prices.
Softs – Cotton prices ticked slightly higher this week on improved demand fundamentals.
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 Aug 1st) | 52 week price change |
|---|---|---|---|---|
| U.S. Wheat | 2.76% | 09/18/18 | $559.25 | $400 - $565 |
| U.S. Corn | 1.81% | 09/18/18 | $365.75 | $328.50 - $412.25 |
| U.S. Cotton | 0.42% | 12/18/18 | $88.34 | $66.65 - $96.49 |
Agricultural commodities led the way this week as the top performers with wheat jumping ahead on tighter global supply and dry weather conditions. Escalating trade war concerns helped lift corn prices as well while cotton rose on higher demand.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF ticker | ETF name | Commodity category | Assets ($MM) | NAV (as of Aug 1st) | Return (weekly %) | Return (YTD %) | Expense ratio |
|---|---|---|---|---|---|---|---|
| WEAT | Teucrium Wheat | Wheat | $70.76 | $6.94 | 7.10% | 15.67% | 1.00% |
| CORN | Teucrium Corn | Corn | $78.14 | $16.96 | 4.43% | 1.15% | 1.00% |
| SOYB | Teucrium Soybeans | Soybeans | $30.89 | $16.86 | 4.20% | -5.70% | 1.00% |
This week’s list of best performing commodity-based ETFs were all agricultural funds with a wheat fund leading the way on dry weather and supply concerns. Trade war fears helped boost corn and soybeans as well but could face future volatility.
Top Three ETF Losers This Week
| ETF ticker | ETF name | Commodity category | Assets ($MM) | NAV (as of Aug 1st) | Return (weekly %) | Return (YTD %) | Expense ratio |
|---|---|---|---|---|---|---|---|
| CANE | Teucrium Sugar | Sugar | $16.13 | $6.89 | -2.96% | -29.55% | 1.00% |
| UHN | United States Diesel-Heating Oil Fund | Heating oil | $7.09 | $20.25 | -0.25% | 4.71% | 0.75% |
| IAU | iShares Gold Trust | Gold | $10,291.33 | $11.74 | -0.09% | -6.16% | 0.25% |
This week’s list of worst performing commodity-based ETFs were mixed with a sugar fund dropping the most. A heating oil fund dropped along with oil prices this week while a gold fund slipped as precious metals continued to face challenges.
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.
