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 18th to July 25th.

Crude oil price rebounded higher this week as imports and U.S. supplies fell unexpectedly.

Copper prices surged this week on higher global demand and a drop in the value of the U.S. dollar.

Lower global crop harvest expectations helped U.S. wheat prices climb to an eight-week high.

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 – A drop in U.S. supplies and a decrease in imports helped lift crude oil prices this week, while natural gas prices rose on storage fears.

Oil – Crude oil prices rose to $69.30 a barrel this week following a slump in U.S. oil supplies, while imports dropped.

Natural Gas – Natural gas prices ticked slightly higher to $2.75 per million British thermal units this week on storage concerns.

Gasoline – The average price for a gallon of gas in the U.S. dropped slightly to $2.85, as volatility continued to affect energy markets this week.

Metals – Higher global demand and supply concerns helped lift copper prices this week to $2.86.

Precious Metals – Gold prices traded mostly flat for the week at $1,231.30 a troy ounce with a recent downtrend halted by a drop in the value of the U.S. dollar.

Other – Aluminum prices ticked slightly lower this week but could face future volatility as the U.S. considered lifting sanctions on Rusal.

Grains – U.S. wheat prices jumped to an eight-week high of $5.39-1/2 a bushel on lower global harvest expectations.

Corn and Soybeans – Lower harvest expectations for corn and soybean crops helped lift prices this week along with wheat.

Softs – Dry weather was the primary catalyst for the sharp uptick in U.S. coffee prices this week.
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 25)52-Week Price ChangeU.S. Wheat9.83%09/18/18$541.75$400.75 – $554U.S. Coffee6.04%09/18/18$110.92$105.80 – $143.75Copper3.67%09/18/18$2.86$2.67 – $3.297

This week’s list of best-performing commodities were led by two agricultural commodities: U.S. wheat and U.S. coffee. U.S. wheat prices jumped on lower crop harvest expectations, while U.S. coffee prices were helped by dry weather conditions in Brazil. Copper also posted gains as the U.S. dollar showed weakness.

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 25)Return (weekly %)Return (YTD %)Expense RatioUHNUnited States Diesel-Heating oil FundHeating oil$7.09$20.303.73%4.96%0.75%UGAUnited States Gasoline FundGasoline$43.71$33.613.45%5.53%0.75%WEATTeucrium WheatWheat$66.17$6.483.35%8.00%1.00%

This week’s list of best-performing commodity-based ETFs were led by a heating oil fund, while a gasoline fund followed close behind. An uptick in crude oil prices helped lift prices, while a wheat fund surged on lower global crop harvest expectations.

Top Three ETF Losers This Week

ETF TickerETF NameCommodity CategoryAssets ($MM)NAV (as of July 25)Return (weekly %)Return (YTD %)Expense RatioDBSInvesco DB Silver FundSilver$18.86$23.54-0.88%-9.57%0.75%DBPInvesco DB Precious Metals FundPrecious metals$121.47$35.70-0.36%-7.25%0.75%DGLInvesco DB Gold FundGold$138.97$38.58-0.28%-6.72%0.75%

This week’s list of worst-performing commodity-based ETFs were made up entirely of precious metals funds with silver and gold registering the largest losses. Healthy stock gains and recent strength in the U.S. dollar negatively impacted safe-haven assets.
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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