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 June 27th to July 4th.

Crude oil prices trended higher for the week but were cut short after Trump demanded that OPEC cut prices.

Gold prices held flat for the week but stayed below $1,300 per troy ounce ahead of this week’s Fed meeting.

Healthy global demand and dry weather conditions helped lift U.S. wheat prices this week.

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 ticked higher this week but showed signs of weakness following Trump’s demand that OPEC cut prices while natural gas prices traded mostly flat on muted demand.

Oil – Crude oil prices ticked higher this week to $73.22 per barrel although gains were cut short after Trump demanded that OPEC cut prices.

Natural Gas – Natural gas prices traded lower this week to $2.85 per million British thermal units on a lack of demand and concerns surrounding the strength of the U.S. dollar.

Gasoline – The average price for a gallon of gas rose slightly this week to $2.86 as the Independence Day holiday kicked off.

Metals – Copper prices fell near a 52-week low of $2.94 per pound this week on a rising U.S. dollar and poor global demand.

Precious Metals – Gold prices held flat for the week at $1,255.30 per troy ounce ahead of the U.S. Federal Reserve’s upcoming meeting regarding interest rates.

Other – Platinum prices bounced higher for the week up to $843.40 per ounce as investors looked ahead to the upcoming Fed meeting.

Grains – U.S. wheat prices jumped higher this week on improved global demand and dry weather conditions.

Corn and Soybeans – Soybean prices fell this week on a lack of global demand and profit-taking activity in the markets.

Softs – The building trade war between China and the U.S. hurt cotton prices, which was caught in the middle of rising tariffs.
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 4th)52 week price changeU.S. Corn2.17%09/18/18$352.50$328.5 – $412.25U.S. Wheat1.24%09/18/18$490.75$400.75 – $559.25Silver0.90%09/18/18$16.11$15.15 – $18.16

This week’s list of best performing commodities included corn and wheat while silver rounded out the number three spot. Corn prices rose this week but could fall as trade tensions rise while wheat prices gained on improved global demand. Silver prices were buoyed by investor safe haven 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 tickerETF nameCommodity categoryAssets ($MM)NAV (as of July 4th)Return (weekly %)Return (YTD %)Expense ratioUSOUnited States Oil FundOil$1,748.41$14.924.56%24.23%0.77%UHNUnited States Diesel Heating Oil FundHeating oil$7.19$20.572.67%6.36%0.75%UGAUnited States Gasoline FundGasoline$46.00$33.782.15%6.06%0.75%

This week’s list of best performing commodity-based ETFs were all related to the energy industry, with an oil fund taking the top spot as oil prices ticked higher for the week. A heating oil and a gasoline fund followed suit.

Top Three ETF Losers This Week

ETF tickerETF nameCommodity categoryAssets ($MM)NAV (as of July 4th)Return (weekly %)Return (YTD %)Expense ratioCANETeucrium SugarSugar$14.34$7.20-6.25%-26.38%1.00%DBBInvesco DB Base Metals FundMetals$300.00$17.28-3.46%-10.97%0.75%CPERUnited States Copper Index FundCopper$10.13$18.43-3.25%-12.48%0.80%

This week’s list of worst-performing commodity-based ETFs were a mixed bunch, with a sugar fund logging the worst performance. A broad metals fund and copper lagged on a stronger U.S. dollar 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.

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