Popular Topics

Terms
You are leaving GraniteShares.com

You are now leaving GraniteShares. We are not responsible for the content on any external website linked to from within this site. Opinions expressed are those of the author or fund manager as of the publication date and are subject to change, are not guaranteed, should not be considered recommendations to buy or sell any security, and should not be considered investment advice.

All performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. For the fund's most recent month end performance, please call 1(844) 476-8747.

For a prospectus on any of our GraniteShares Funds, please click here.

Research / Commodities and Precious Metals Update (Week Ending Apr. 5) Share

Commodities and Precious Metals Update (Week Ending Apr. 5)

Share

Key points 

  • The energy sector was the best performing sector last week, with all components ending higher.  WTI and Brent crude oil prices increased 4.9% and 4.1%, respectively. Gasoil and heating oil prices rose 2.0% and 3.6%, respectively.  Gasoline prices rose 4.6% while natural gas prices were practically unchanged at up 0.1%
  • The grain sector also performed well with all components higher.   Corn prices increased 1.7%.  Chicago wheat prices increased 2.2% and Kansas wheat prices gained 0.3%. Soybean prices increased 1.7%.
  • A mixed week for base metal prices. Aluminum and copper prices were down, declining 1.5% and 1.4%, respectively, while nickel prices increased 0.6%.  Zinc prices were unchanged.
  • Gold and silver prices ended the week lower, declining 0.5% and 0.2%, respectively.  Platinum prices move higher again last week, climbing 6.2%.
  • Lean hog prices reversed course from last week jumping 11.8%.
  • The S&P GSCI outperformed the Bloomberg Commodity Index last week with the S&P GSCI up 3.03% and the Bloomberg Commodity Index up 1.63%. The S&P GSCI’s larger exposure to energy was primarily responsible for its outperformance.
  • Total assets in commodity ETPs fell $1,155.1m last week. Gold     (-$936.1m), crude oil (-$95.9m) and broad commodity (-$95.2m)  were primarily responsible for the  ETP outflows.

Commentary

Positive economic reports from both the U.S. and China combined with increased optimism over a U.S.-China trade agreement pushed U.S stock and commodity markets higher last week. A slew of solid U.S economic reports – including ISM manufacturing index, durable goods orders and jobless claims –  throughout the week,  culminating with a better-than-expected employment situation report on Friday along with better-than-expected Chinese manufacturing data on Monday helped push the S&P 500 Index up 2.1% and the Bloomberg Commodity index up 1.6%.  The 10-year U.S. Treasury rate increased 10bps to 2.50% and the U.S. dollar as measured by the DXY index strengthened 0.1%.

Despite a much-larger-than-expected increase in U.S. oil inventories and a rise in active U.S rigs last week, WTI crude prices moved higher again last week.   Strong economic reports in both the U.S. and China, increased optimism over a U.S.-China trade agreement, one-time extenuating factors increasing U.S. inventory levels and lower Saudi Arabia production helped push WTI oil price higher by almost 5% for the week and just under 39% for the year.

Most base metal prices moved higher through Wednesday last week on renewed optimism over a U.S.-China trade agreement and a strong Chinese manufacturing report on Monday. Zinc and Nickel prices were also supported over concerns of supply shortages. Base metal prices moved lower Thursday and Friday with expectations of a final U.S.-China trade agreement still weeks away.  Copper prices also suffered as inventory levels tracked by LME increased on Friday for the fifth week in a row.

Gold and silver prices moved lower as the 10-year U.S. interest rate moved higher and the dollar slightly strengthened.  Platinum prices enjoyed their biggest increase in over 2 years, pushing off their lows relative to palladium and gold prices. Platinum prices are up 13.7% year-to-date.

Corn, wheat and soybean prices all increased last week supported by strong U.S and Chinese economic reports and increased hopes of a U.S.-China trade agreement.  Increased U.S wheat exports combined with shrinking wheat plantings also supported wheat prices.

Lean hog prices soared 11.8% with swine fever reported in another Chinese province increasing fears of the spread of the disease.

Coming up this week      

  • Moderate data week accentuated by inflation numbers, the release of FOMC minutes and Fed. Chairman Jerome Powell speaking Wednesday through Friday.
  • Factory orders on Monday.
  • CPI and release of FOMC minutes on Wednesday.
  • PPI and Jobless claims on Thursday.
  • Consumer sentiment on Friday.
  • EIA Petroleum Report on Wednesday and Baker-Hughes Rig Count on Friday.