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 6th to June 13th.

Crude oil prices jumped this week after an unexpected draw in crude supply inventories.

Gold prices ticked higher this week on a lower U.S. dollar but were capped ahead of a Fed decision about raising interest rates.

Tighter grain supply expectations helped U.S. wheat, corn and soybean prices head higher this week.

Be sure to read our previous edition to keep in touch with the changing trends in the global commodities space.

Weekly Market Wrap-up

Energy – An unexpected draw on crude inventories drive oil prices higher this week, while natural gas prices rose on warmer weather expectations.

Oil – Crude oil prices moved higher this week to $66.64 a barrel on a higher-than-expected draw in crude supplies.

Natural Gas – Natural gas prices rose to $2.96 per million British thermal units on a warmer weather outlook this week.

Gasoline – The average price for a gallon of gas dropped to $2.91 this week but could rise again as summer demand rises.

Metals – Copper prices fell this week as investors awaited word from the Fed regarding interest rates.

Precious Metals – Gold prices traded slightly higher this week to $1,302.80 a troy ounce on a lower U.S. dollar, but stagnated on news that another rate hike could happen.

Other – Aluminum prices traded lower this week on liquidity fears stemming from China.

Grains – U.S. wheat prices climbed to $5.34 1/2 a bushel this week after a report revealed tighter supply expectations for grains.

Corn and Soybeans – Corn prices jumped to $3.77 1/2 a bushel on the same tighter supply expectations that drove wheat prices higher this week.

Softs – U.S. cotton futures jumped this week to more than 93 cents per pound as farmers turned away from wheat and toward a more robust crop.
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 June 13)52-Week Price ChangeU.S. Cotton3.08%07/18/18$93.76$66.16 – $96.49Crude Oil WTI2.92%07/18/18$66.66$42.05 – $72.83Silver2.66%07/18/18$17.06$15.15 – $18.16

U.S. cotton topped this week’s list of best-performing commodities as investors turned bullish following consistent drops in U.S. wheat values. Crude oil jumped this week after an unexpected drop in supply inventories, while silver rose as investors turned to safe-haven assets.

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 June 13)Return (weekly %)Return (YTD %)Expense RatioWEATTeucrium WheatWheat$72.80$7.014.01%16.83%1.00%PALLETFS Physical Palladium SharesPalladium$159.82$97.002.75%-4.48%0.60%SLViShares Silver TrustSilver$5,350.11$15.872.26%-0.75%0.50%

This week’s list of best-performing commodity-based ETFs were somewhat mixed with a wheat fund taking the top spot on short-covering activity. A palladium fund rose as demand for electric vehicles remained healthy, while a silver fund rose as investors sought safe-haven assets.

Top Three ETF Losers This Week

ETF TickerETF NameCommodity CategoryAssets ($MM)NAV (as of June 13)Return (weekly %)Return (YTD %)Expense RatioSOYBTeucrium SoybeanSoybean$16.00$17.80-3.52%-0.45%1.00%TAGSTeucrium Agricultural FundAgriculture$1.70$22.40-3.49%1.36%1.00%CORNTeucrium Corn FundCorn$81.29$17.46-1.19%4.13%1.00%

This week’s list of worst-performing commodity-based ETFs were all in the agricultural sector with corn and soybeans along with a broad agricultural fund. Profit-taking activity was mostly responsible for the drop.
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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