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 April 25th to May 2nd

The average price for a gallon of gas in the U.S. continued to climb this week to $2.81, matching the highest level since 2014.

Gold prices slipped this week to just over $1,310 per troy ounce under pressure from a rising U.S. dollar.

Wheat prices soared higher this week as dry winter weather damaged crops more than expected.

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

Weekly Market Wrap-up

Energy – Energy prices held flat this week ahead of the summer months with both crude oil and natural gas prices staying flat.

Oil – Crude oil prices traded somewhat flat for the week at $67.78 a barrel as prices bounced back and forth ahead of the upcoming EIA supply data.

Natural Gas – Natural gas prices also held flat this week at $2.78 per million British thermal units but remained high as April withdraws continued to exceed expectations.

Gasoline – The average price for a gallon of gas in the U.S. rose again this week to $2.81 – the highest since 2014.

Metals – Copper values dropped to a four-week low of $3.07 this week on a stronger U.S. dollar and concerns surrounding Chinese demand.

Precious Metals – A strong U.S. dollar continued to play havoc on gold values with prices hovering at $1,310.90 a troy ounce for the week.

Other – Nickel prices showed strength continuing from last week as reports of dwindling metal supply and higher demand for electric cars drove the market.

Grains – July wheat futures touched $5.30 per bushel this week as reports of dry winter weather conditions helped prop up prices.

Corn and Soybeans – Soybeans prices for July delivery rose this week to $10.56¼ as demand remained high.

Softs – Both London sugar and cocoa prices rose this week, while coffee hit a 5-month high on bullish technical activity.
If you want to know what commodity is right for you, check out our Commodity Investing Database.

Content continues below advertisement

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 May 2)52-Week Price ChangeU.S. Wheat7.73%07/18/18$525.50$400.75 – $574.25U.S. Coffee7.26%07/18/18$125.22$113 – $143London Sugar4.90%NA$327.60$311 – $469

This week’s top-performing commodities were all agricultural with U.S. wheat leading the way as dry winter weather conditions took their toll on the crop. U.S. coffee and London Sugar prices jumped on bullish technical buying activity as well.

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 May 2)Return (weekly %)Return (YTD %)Expense RatioWEATTeucrium WheatWheat$69.57$6.948.73%15.62%1.00%CORNTeucrium Corn FundCorn$76.74$18.383.61%9.62%1.00%DBAPowerShares DB Agriculture FundBroad agricultural$746.76$19.482.91%3.84%0.85%

This week’s top-performing commodity-based ETFs were largely agricultural like the top commodities. A wheat fund was the highest gainer following along with wheat’s rise this week. A corn fund and broad agriculture fund also rose on higher agricultural commodity demand.

Top Three ETF Losers This Week

ETF TickerETF NameCommodity CategoryAssets ($MM)NAV (as of May 2)Return (weekly %)Return (YTD %)Expense RatioPPLTETFS Physical Platinum SharesPlatinum$506.96$85.03-4.12%-3.89%0.60%USAGUnited States Agriculture Index FundAgriculture$1.78$16.64-4.09%0.79%0.80%CPERUnited States Copper Index FundCopper$10.73$19.36-3.44%-8.07%0.80%

This week’s worst-performing commodity-based ETFs were led by a platinum fund that sank on a rising U.S. dollar. A copper fund fell for similar reasons, while a U.S. agricultural fund dropped mainly due to foreign currency risk.
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.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *