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 August 1st to August 8th.
- Crude oil prices rebounded this week following new sanctions against Iran and rising U.S. inventories.
- Despite a drop in the value of the U.S. dollar, gold prices basically held steady this week.
- Soybean prices soared this week after a USDA report cut crop ratings.
- 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 – Sanctions against Iran and an increase in U.S. oil inventories helped lift crude oil prices this week, while natural gas spiked on bullish speculative activity.
- Oil – Crude oil prices recovered this week to $69.21 per barrel on rising U.S. inventories and new sanctions against Iran.
- Natural Gas – Natural gas prices jumped higher this week to $2.89 per million British thermal units on bullish speculation.
- Gasoline – Average prices for a gallon of gas in the U.S. held mostly flat, dipping slightly to $2.86, although demand remains high.
Metals – Copper prices held flat for the week at $2.75 as copper mine strike disputes offset mounting trade war tensions.
- Precious Metals – Gold prices only showed a minor improvement this week to $1,219.90 a troy ounce following a weaker dollar value.
- Other – Platinum prices rose higher this week following the announcement of a mining output reduction.
Grains – Lower U.S. export demand and profit-taking activity took U.S. wheat prices lower this week.
- Corn and Soybeans – A lower USDA crop rating helped soybean prices rebound this week.
Softs – Short supply helped lift cotton prices higher again this week, nearing record highs.
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. 8) | 52-Week Price Change |
|---|---|---|---|---|
| Natural Gas | 4.60% | 09/18/18 | $2.89 | $2.53 - $3.66 |
| Heating Oil | 3.17% | 09/18/18 | $2.16 | $1.54 - $2.30 |
| Brent Oil | 3.03% | 10/18/18 | $74.56 | $50 - $80.5 |
This week’s list of best-performing commodities was topped by energy commodities. Natural gas led the way on bullish speculation, while heating oil and Brent oil gained, mostly because of imposition of Iranian sanctions.
Weekly Commodity ETF Movers
For ETF investors, we tracked the top three biggest gainers and top three biggest losers for the past week. Not included are ETN’s, which behave differently than ETF’s, as well as leveraged ETF’s which may not be suitable for some investors. Some ETF’s that have less than one year on the market have been excluded due to lack of long term data.
Top Three ETF Winners This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of Aug. 8) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| WEAT | Teucrium Wheat | Wheat | $72.73 | $7.18 | 4.82% | 19.67% | 1.00% |
| UNG | United States Natural Gas Fund | Natural gas | $379.84 | $23.43 | 2.05% | 0.47% | 1.30% |
| TAGS | Teucrium Agricultural Fund | Agriculture | $1.62 | $21.26 | 1.33% | -3.80% | 1.00% |
This week’s list of best-performing commodity-based ETFs found a wheat fund taking the top spot, despite the fall in wheat prices this week. Bullish momentum helped propel the fund higher, while a natural gas fund gained on higher investor interest. A broad agricultural fund rounded out the list for the week.
Top Three ETF Losers This Week
| ETF Ticker | ETF Name | Commodity Category | Assets ($MM) | NAV (as of Aug. 8) | Return (weekly %) | Return (YTD %) | Expense Ratio |
|---|---|---|---|---|---|---|---|
| CPER | United States Copper Index Fund | Copper | $12.07 | $17.22 | -2.44% | -18.23% | 0.80% |
| PALL | ETFS Physical Palladium Shares | Palladium | $131.06 | $86.06 | -2.29% | -15.25% | 0.60% |
| BNO | United States Brent Oil Fund | Brent oil | $99.24 | $20.65 | -2.27% | 14.09% | 0.90% |
This week’s list of worst-performing commodity-based ETFs was mainly composed of metals, with a copper fund dropping on trade war concerns. A palladium fund lost ground following last week’s gains, while a Brent oil fund lagged behind this week’s rise in oil prices.
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.
