Sage Investment Club 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 from July 4th to July 11th.

Crude and Brent oil prices fell this week as OPEC boosted production and Libya resumed its export business.

Gold prices dropped this week as escalating trade tensions with China hit the broader metals market.

Strong demand helped lift U.S. gasoline prices and should continue to climb as we head deeper into the summer months.

Be sure to check our previous edition so that you are aware of the changing trends in the commodity space.

Weekly Market Wrap-up

Energy – Crude oil prices dropped this week as OPEC boosted output and Libya resumed exports, while natural gas prices traded mostly flat ahead of Thursday inventory report.

Oil – Crude oil prices fell to $70.38 a barrel this week as OPEC increased output and Libya resumed export activities.

Natural Gas – Natural gas prices trickled lower this week to $2.82 per million British thermal units ahead of Thursday’s inventory report.

Gasoline – The national average for gasoline prices in the U.S. ticked slightly higher this week to $2.87 on strong demand.

Metals – Chinese trade worries caused copper prices to fall to a one-year low of $2.753 a pound as additional tariffs could escalate trade war concerns.

Precious Metals – Gold prices dropped to $1,243.90 a troy ounce this week on rising trade tensions between the U.S. and China.

Other – Palladium prices fell to a two-week low of $934.35 per ounce along with a broad drop in metals due to increasing trade war tensions.

Grains – U.S. wheat prices fell this week as tensions with China along with positive weather conditions hurt demand.

Corn and Soybeans – Chinese tariffs on soybeans hurt prices this week as a deepening trade dispute could lead to larger losses.

Softs – Cotton prices benefited from an escalating trade war with China with investors turning more bullish.
If you want to know what commodity is right for you, check out our Commodity Investing Database.

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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.

CommodityWeekly Gain (%)Contract ExpirationContract Price (as of July 11)52-Week Price ChangeU.S. Coffee5.39%09/18/18$112.03$106.2 – $143.75U.S. Cotton3.53%12/18/18$85.09$66.3 – $96.49U.S. Corn-0.15%09/18/18$342.75$328.5 – $412.25

Agricultural commodities were the biggest winners this week with U.S. coffee and U.S. cotton logging the only positive commodity gains. Coffee and cotton prices were actually helped by Chinese trade tariffs, while corn simply lost the least relative to other commodities this week.

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 TickerETF NameCommodity CategoryAssets ($MM)NAV (as of July 11)Return (weekly %)Return (YTD %)Expense RatioPALLETFS Physical Palladium SharesPalladium$146.70$89.10-0.37%-12.26%0.60%DBSInvesco DB Silver FundSilver$19.55$24.18-0.53%-7.11%0.75%GLDSPDR Gold TrustGold$32,477.73$117.64-0.85%-4.86%0.40%

This week’s list of best-performing commodities found metals funds leading the way despite none actually posting positive gains. Palladium lost the least, with silver and gold following closely behind as investors preferred safe-haven metals over other commodities.

Top Three ETF Losers This Week

ETF TickerETF NameCommodity CategoryAssets ($MM)NAV (as of July 11)Return (weekly %)Return (YTD %)Expense RatioCPERUnited States Copper Index FundCopper$9.87$17.38-5.71%-17.48%0.80%DBBInvesco DB Base Metals FundMetals$289.91$16.46-4.75%-15.20%0.75%BNOUnited States Brent Oil FundBrent oil$105.05$20.75-4.11%14.64%0.90%

This week’s list of worst-performing commodities was strikingly similar to the best-performing commodities, with metals funds taking the top two spots. The escalating trade war with China hurt copper prices along with other metals, while a Brent oil fund dropped as OPEC increased oil production.
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.

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