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 20th to June 27th.

Crude oil prices jumped higher this week after a sudden and unexpected fall in U.S. stockpiles.

Gold prices fell again this week as a strong U.S. dollar put pressure on safe-haven investor demand.

Trade war concerns were responsible for copper prices falling this week to a three-month low.

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 and Brent oil prices spiked this week after a surprise drop in U.S. stockpiles, while natural gas prices rose on warmer weather expectations.

Oil – An unexpected drop in U.S. crude stockpiles sent crude oil prices soaring to $72.31 per barrel, near a 52-week high.

Natural Gas – Natural gas prices traded slightly higher this week to $2.99 per million British thermal units as warmer weather expectation helped fuel demand.

Gasoline – The average price for a gallon of gas fell again this week to $2.84 and could fall further following OPEC’s announcement of increased production.

Metals – Copper prices fell to a 3-month low this week of $2.9830 per lb as the trade war weighed heavily on investors’ minds.

Precious Metals – Gold prices fell again this week to $1,255.90 a troy ounce as a strong dollar lured investors away from safe-haven assets.

Other – Bargain hunters helped lift zinc prices this week along with other industrial metals.

Grains – U.S. wheat prices rose this week on increased buying activity following three straight days of losses.

Corn and Soybeans – Corn prices held flat for the week as healthy rainfall mitigated investor interests.

Softs – Increased demand and bullish buying activity helped lift 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 June 27)52-Week Price ChangeCrude Oil WTI9.11%08/18/18$72.31$43.65-$72.83Coffee3.28%09/18/18$117.38$112-$143.75Brent Oil3.10%09/18/18$77.11$46.11-$80.5

Crude oil prices spiked this week sending it rocketing to the top of this week’s list of best-performing commodities. An unexpected drop in U.S. stockpiles helped fuel the rise with Brent oil tracking at number three. U.S. coffee rose as well on higher demand and bullish investment activity.

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 27)Return (weekly %)Return (YTD %)Expense RatioUSOUnited States Oil FundOil$1,797.16$14.278.60%18.82%0.77%USLUnited States 12 Month Oil FundOil$83.56$24.525.42%17.21%0.86%DBOInvesco DB Oil FundOil$589.89$12.154.65%19.70%0.75%

This week’s list of best-performing commodities were oil funds with USO taking the top spot as an unexpected drop in U.S. oil stockpiles lifted crude and Brent prices higher. Two other oil funds also found their way onto the list nudging out other commodities.

Top Three ETF Losers This Week

ETF TickerETF NameCommodity CategoryAssets ($MM)NAV (as of June 27)Return (weekly %)Return (YTD %)Expense RatioUSAGUnited States Agriculture Index FundAgriculture$1.65$16.20-4.59%-1.88%0.80%SOYBTeucrium SoybeanSoybeans$16.34$16.37-2.27%-8.45%1.00%WEATTeucrium WheatWheat$65.30$6.19-1.90%3.17%1.00%

This week’s list of worst-performing commodities were all agricultural funds and a strong U.S. dollar put pressure on prices. A broad agricultural fund was the worst performer with a soybean and wheat fund following close behind.
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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