GraniteShares
  • ETFs
    • BAR
    • PLTM
    • HIPS
    • COMB
    • COMG
  • Insights
  • About
  • Press Room
  • Contact
  • Sign Up
GraniteShares
  • ETFs
    • BAR
    • PLTM
    • HIPS
    • COMB
    • COMG
  • Insights
  • About
  • Press Room
  • Contact
  • Sign Up
FILTER BY:
Commentary,

Commodities and Precious Metals Report – Week Ending Nov. 23

by Jeff Klearman3 months ago
ShareShareShare

Key points

  • The energy sector was the worst performing sector last week. Brent and crude oil prices fell 11.7% and 11.0%, respectively, while gasoline and heating oil prices fell 11.0% and 9.2%, respectively.  Natural gas futures were once again the lone standout with natural gas prices increasing 7.7% over the week.
  • Base metal prices were mixed again last week with copper and aluminum prices increasing and zinc and nickel prices falling. Copper and aluminum prices increased 0.8% and 1.1%, respectively.  Zinc and nickel prices fell 1.7% and 3.1%,respectively.
  • Grain prices were all lower last week. Chicago wheat prices fell 1.5%, Kansas wheat prices fell 3.4%, corn prices fell 2.1% and soybean prices declined 0.9%.
  • Gold prices finished higher again last week, increasing 0.1%.  Silver prices declined slightly, decreasing 0.1% and platinum prices fell 0.48%.
  • Lean hog futures were the second best performing futures contract last week (behind natural gas), gaining 6.4%.
  • The Bloomberg Commodity Index outperformed the S&P GSCI again last week. The Bloomberg Commodity Index decreased 2.85%while the S&P GSCI fell 6.62%. The Bloomberg Commodity Index’s lower energy exposure but higher natural gas exposure and precious metal exposure was primarily responsible for its outperformance.
  • Total assets in commodity ETPs fell $171.6m. Energy (ex-crude oil) (-$346.7m) ETP outflows were offset primarily by gold ($127.2m) and crude oil ($43.9m) ETP inflows.

Commentary

Continuing concerns of slower global growth compounded by growing concerns of a U.S. slowdown helped push the S&P 500 lower last week moving its year-to-date performance into negative territory for the first time this year. Lower-than-expected durable goods orders and existing home sales numbers last week and struggling tech stock performance raised the specter of slowing economic growth in the U.S. and added to speculation the Federal Reserve Bank may reduce the number of rate increases in 2019. Despite concerns of weaker U.S. growth, the U.S. dollar strengthened as a result of reduced expectations of a U.S.- China trade deal.  At week’s end the S&P 500 Index was down 3.8% (down 1.54% YTD), the U.S. dollar was higher 0.46% and the 10-year U.S Treasury rate were lower by 3 bps at 3.03%.

Crude oil prices continued their move lower, once again on oversupply and diminishing demand concerns. Up almost 1% through Tuesday on expectations of OPEC production cutbacks in 2019, oil prices fell sharply on Wednesday and Friday after the EIA reported a ninth week of inventory growth and on growing expectations U.S. oil production would continue to increase through next year. Natural gas prices continued their climb higher on the back of historically low inventories, record exports and frigid weather (actual and forecast) for a large part of the U.S. Natural gas prices are up 33% over the past month.

Increased supply concerns as the Philippines announced it may allow 9 out of 12 mines shutdown last year for environmental reasons to resume production helped push Nickel prices lower. Zinc prices moved lower, too, on supply concerns despite existing “tight” inventory levels and backwardation in the futures market. Copper prices, up 1% through Thursday on hopes of a favorable U.S. – China trade deal, dropped on Friday on the back of a stronger U.S. dollar and increased U.S. – China frictions.

Gold prices were supported last week mainly as a result of the struggling U.S stock market. Increased concerns of a U.S. slowdown along with a global slowdown and speculation the Federal Reserve Bank may consider reducing the number of interest rate increases next year also helped maintain gold prices. 

Lean hog prices moved higher again last week over continued concerns of China’s ability to contain the swine fever outbreak.

Coming up this week      

  • Decent data week with once again most data released on Wednesday.
  • Consumer confidence on Tuesday.
  • 2nd estimate of Q3 GDP, international trade in goods, new home sales and FOMC minutes (from last meeting) on Wednesday.
  • Fed Chairman Jerome Powell speaks on Wednesday.
  • Jobless claims and personal income and outlays on Thursday.
  • EIA Petroleum Report on Wednesday and Baker-Hughes Rig Count on Friday.
CommoditiesMetalsweekly
Jeff Klearman

Jeff Klearman

Jeff Klearman is a Portfolio Manager for GraniteShares.

Related posts

Commentary,

Commodities and Precious Metals Update (Week Ending Feb. 8)

by Jeff Klearman6 days ago
Commentary,

Commodities and Precious Metals Update (Week Ending Feb. 1)

by Jeff Klearman2 weeks ago

Popular Insights

  • Hear It From the Experts – Advisor Interview With Gabriel Pincus of GA Pincus Funds

    Hear It From the Experts – Advisor Interview With Gabriel Pincus of GA Pincus Funds

    July 8, 2017
  • Platinum: A Misunderstood Metal With A Breathtaking Range of Uses

    Platinum: A Misunderstood Metal With A Breathtaking Range of Uses

    3 months ago
  • Every ‘Cloud’ Has A Platinum Lining

    Every ‘Cloud’ Has A Platinum Lining

    3 months ago

© 2018 GraniteShares. All rights reserved.

This website and its content has been provided by GraniteShares.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the fund, please call (844) 476 8747 or visit the website at www.graniteshares.com. Read the prospectus or summary prospectus carefully before investing.

The funds are distributed by Foreside Fund Services, LLC. GraniteShares is not affiliated with Foreside Fund Services, LLC.

You could lose money by investing in the ETFs. There can be no assurance that the investment objective of the funds will be achieved. None of the funds should be relied upon as a complete investment program. The investment program of the funds are speculative, entails substantial risks and include asset classes and investment techniques not employed by more traditional mutual funds.

Investments in the ETFs are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

Exchange-traded funds (ETFs) shares trade at market prices rather than at net asset value (NAV), shares may trade at a price greater than NAV (premium) or less than NAV (discount). Shares may be bought and sold throughout the day on the exchange through any brokerage account. Buying and selling shares of ETFs will result in brokerage commissions.

Investing in physical commodities, including through commodity-linked derivative instruments such as commodity futures, commodity swaps, as well as other commodity-linked instruments, is speculative and can be extremely volatile, and may not be suitable for all investors. Market prices of commodities may fluctuate rapidly based on numerous factors, including: changes in supply and demand relationships (whether actual, perceived, anticipated, unanticipated or unrealized); weather; agriculture; trade; domestic and foreign political and economic events and policies; diseases; pestilence; technological developments; currency exchange rate fluctuations; and monetary and other governmental policies, action and inaction.

A liquid secondary market may not exist for the types of commodity-linked derivative instruments the fund buys, which may make it difficult for the fund to sell them at an acceptable price. The fund is new with no operating history. As a result, there can be no assurance that the fund will grow to or maintain an economically viable size, in which case it could ultimately liquidate.

"Bloomberg®" AND "Bloomberg Commodity Index"SM are service marks of Bloomberg Finance L.P. and its affiliates (collectively, "Bloomberg") and have been licesned for use for certain purposes by GraniteShares Inc. Neither Bloomberg nor UBS Securities LLC and its affiliates (Collectively, "UBS") are affiliated with GraniteShares Inc., and Bloomberg and UBS do not approve, endorse, review, or recommend any GraniteShares ETF. Neither Bloomberg nor UBS guarantees the timeliness, accurateness, or completeness of any data or information relating to Bloomberg Commodity IndexSM.

"THE S&P GSCI INDEX" is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use by GraniteShares Inc. Standard and Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); And these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by GranitesShares Inc. GraniteShares ETFs are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P GSCI Index."

©2018 GraniteShare Inc. All Rights Reserves. GraniteShares, GraniteShares ETFs, and the GraniteShares logo are registered and unregistered trademarks of GraniteShares Inc., in the United States and elsewhere. All other markks are the property of their respective owners.

GraniteShares Platinum Trust (PLTM) and GraniteShares Gold Trust (BAR), must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing or sending money. To obtain a prospectus, visit: BAR, PLTM.

Shares of the trust are not insured by the Federal Deposit Insurance Corporation (“FDIC”), may lose value and have no bank guarantee.The trust is not mutual funds or any other type of investment company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder. The trust is not a commodity pool for purposes of the commodity exchange act of 1936, as amended.

Foreside Fund Services, LLC provides marketing services to the trust. The sponsor of the trust is GraniteShares LLC.
Sign Up Today