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Weekly Commodities ETF Report: Crude Lower After US Stockpiles Surge, Trade Tensions Dent Global Outlook; Gold Posts Sixth Weekly Loss as Uncertainty Sends US Dollar Higher

(MT Newswires) – – Crude ended Friday’s session higher but marked a loss on the week that saw a bigger-than-expected rise in US stockpiles of the key commodity in Wednesday’s data, raising concerns about supplies even as investors looked ahead to the resumption of trade talks between the US and China that could cool geopolitical tensions. But the US-China trade dispute has weighed on sentiment amid concerns about slower growth and demand in the world’s second-biggest economy. Underpinning the weakness is the prospect of more sanctions on Iran after the US hit the country with a round of penalties recently. And new protests by workers at Libya’s Zawiya oil export terminal are threatening again to hinder production at a time when crude output from the North African nation is at a two-month high of over one million barrels a day, according to a report from S&P Global Platts. Back in the US, Baker Hughes (BHGE) reported that the active rig count was unchanged week on week at 869, a level that’s the highest since early March 2015. With the gas rig tally also flat, the US count overall was at 1,057. A year ago, the oil count was at 763 and the overall US tally was at 946.

Over the last five days, light, sweet crude oil for September delivery fell 2.80% and settled at $65.91 per barrel. In other energy futures, gasoline declined during the week, down 3% and settled at $1.98 per gallon at the close of Friday’s session. Meanwhile, natural gas rose 0.4% this week and was up in Friday’s session at $2.95 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 0.04% this week, from a drop of 0.27% in the previous week.

Gold rose 0.6% on Friday to $1,184, but ended the week down 2.3% — the sixth straight weekly decline as the rallying US dollar has made prices for the precious metal more expensive for buyers using other currencies. The dollar has jumped and earned status among investors as a haven in turbulent times over gold as Turkey’s financial crisis sent its lira currency spiraling and spread worries that the upheaval could extend into other emerging markets.

Copper ended Friday’s session higher at $2.68 but closed with a weekly loss of about 3% after it entered a bear market at midweek, according to CNBC. The strength in the US dollar was hitting that commodity too, along with worries about how the global trade wars could impact international growth. Prices seemed to take little comfort from reports that a strike at the giant Escondida mine in Chile might be averted when managers at the world’s biggest copper mine, run by BHP Billiton, said they had reached a deal with union officials, according to Reuters.

Agriculture commodities ended the week on a mixed note. Sugar had a weekly decline of 3.23% and settled at a price of $0.102 on Friday as India ramps up production of the sweetener. Coffee was at $1.047 per pound at Friday’s close, with a weekly decrease of 5%; and cocoa rose 1.2% in the week and closed Friday’s session at $2,149 as Bloomberg reported on an outbreak of caterpillars in part of Ghana, the world’s second-biggest cocoa producer. Among grains, corn was up 2.1% in the week and settled at $3.79 per bushel Friday; and wheat rose 1.8% for the week to end at $5.79 per bushel by Friday’s close. Meanwhile, soybeans jumped 4.3% for the week, closing at $8.98 per bushel on Friday amid optimism about the restart of US-China trade talks, although S&P Global Platts said Chinese buyers can’t benefit from the renewed talks until the market starts pricing in a better trade relationship that would allow US soybeans to again be competitive in the Chinese market. US soybeans have been subject to Chinese tariffs in a retaliatory move taken by the Asian nation.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 1.68% for the week, compared with a fall of 2.74% in the prior week.

 

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Weekly Commodities ETF Report: Crude Lower as US Sanctions Vs Iran Expected to Tighten Supply; Gold Weakens Amid Turkey’s Currency Woes

(MT Newswires) – Crude ended Friday’s session higher, even as concerns that the trade dispute between the US and China could eventually hit global growth, although crude is not on the Chinese retaliatory list yet. Meanwhile, the US has implemented sanctions against Iran, which is expected to tighten supply from one of the biggest oil producers in the world. Analysts expect Iranian crude exports to fall by between 500,000 and 1.3 million barrels per day, with buyers in Japan, South Korea and India already dialing back orders, a report from Reuters said. The International Energy Agency also warned that the full re-imposition of sanctions by November would put more pressure on the Organization of the Petroleum Exporting Countries (OPEC) exports, creating a bullish set-up for oil prices. And, Baker Hughes (BHGE) reported that the active US rig count rose by 10 to 869, the largest gain since May. Including gas, the US rig count was higher by 13 in the week to 1,057. A year ago, the oil count was at 768 and the overall US tally was at 949.

Over the last five days, light, sweet crude oil for September delivery edged 1.41% lower and closed at $67.63 per barrel. In other energy futures, gasoline fell during the week, down 1.41% and settled at $2.04 per gallon at the close of Friday’s session. Meanwhile, natural gas rose 3.19% this week and was down in Friday’s session at $2.94 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 0.27% this week, from a decline of 1.18% in the previous week.

Gold ended the Friday session lower, settling at $1,219 and ended the week lower, down 0.20% — the fifth weekly decline — as Turkey’s plummeting lira sent shockwaves across the financial community. The Turkish lira tumbled to a new low against the dollar amid a deepening rift with the US and intensifying worries about the state of the economy and domestic inflation. President Recep Tayyip Erdogan, in an attempt to soothe financial markets, instead delivered a heavily nationalistic speech that only inflamed risk aversion. Back home, the US has decided to increase tariffs on Turkish steel and aluminum, because they may threaten national security, a White House spokesperson said. The Trump administration said it was doubling the tariff on imports of Turkish steel and aluminum to 50% and 20%, respectively.  On the other hand, copper ended Friday’s session lower at $2.74 and closed the week down 0.36% after China announced a 25% tariff on US copper imports, which prompted several Chinese copper fabricators and importers to divert or resell their cargoes of US copper scraps that were en route to China, according to a report on Reuters. The new taxes will be imposed on cargoes arriving in China starting Aug. 23. The average cargo of scrap copper sent to China from the US is approximately 20 tonnes, the report added. With only two weeks to go before the tariffs are imposed, there are concerns over possible trade disruptions, with recyclers scrambling to look for alternative destinations for their cargoes to avoid paying the new duties.

Agriculture commodities ended the week mostly lower following the release of the US Department Agriculture’s World Agricultural Supply and Demand Estimates report. The production outlook for corn, soybeans, sugar and cotton in 2018/19 was raised, while for wheat, the production estimate was  lowered.  Sugar had a weekly decline of 2.58% and settled at a price of $0.11 on Friday; coffee was at $1.07 per pound at Friday’s close, with a weekly decrease of 0.60%; and cocoa edged 0.14% higher for the week and closed Friday’s session at $2,118.  Among grains, corn was down 3.38% in the week and settled at $3.71 per bushel in Friday’s session; and wheat fell 2.28% for the week and settled at $5.69 per bushel at the end of Friday’s session. Meanwhile, soybeans fell 4.78% for the week, closing at $8.62 per bushel on Friday. Developments from the US-China trade war continue to affect the soybean trade. US-sourced soybeans have lost competitiveness in the market after China imposed a 25% tax on US soybeans in July; this has provided the opportunity for other countries to increase their exports to China, i.e. Canada, which is expected to increase its soybean exports to China, according to a report on S&P Global. Canada exports about 5.5 million mt of soybeans; traders now expect that 80% of this will be exported to China in 2018/19, the report said. Canadian soybeans are also cheaper than soybeans sourced from Brazil, the report added. The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) fell 2.74% for the week, compared with an increase of 0.15% in the prior week.

 

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

 

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Weekly Commodities ETF Report: Fresh US-China Trade Tensions Weigh on Copper, Agriculture Commodities; Crude Struggles With Supply Issues

(MT Newswires) – Trade tensions between the US and China flared up once again following the Trump administration’s announcement this week that it plans to double tariffs on a range of Chinese imports worth about $200 billion; Beijing retaliated with its own tariffs of about $60 billion to be imposed on US goods being imported into China. The tit-for-tat trade moves between the two countries have exacerbated fears for a trade war, with industrial metals such as copper and agricultural commodities like soybeans and wheat among the most heavily affected.

Crude edged lower for the week, ending Friday’s session in the red amid renewed concerns about excess supply in the market, after data showed oil output in Russia to have increased sharply in July. Russian oil output rose by 150,000 barrels per day in July from a month earlier, surpassing the amount Moscow had said it would add following a key Vienna meeting in June. Meanwhile, Saudi Arabia has cut the September official selling prices for all its grades to meet customer demand. And, back home, Baker Hughes (BHGE) reported that the active US rig count dropped by two to 859 rigs in the week. Last week, Baker Hughes said, three rigs were added in the US, taking the total rig count in the country to 861.

Over the last five days, light, sweet crude oil for September delivery edged 0.64% lower and closed at $68.49 per barrel. In other energy futures, gasoline fell during the week, down 2.40% and settled at $2.07 per gallon at the close of Friday’s session. Meanwhile, natural gas rose 2.19% this week and was up in Friday’s session at $2.85 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 1.18% this week, from an increase of 1.25% in the previous week.

Gold ended the Friday session higher, settling at $1,223.20 as this week’s tepid jobs data has helped the yellow metal log some modest gains. July nonfarm payrolls increased 157,000, missing the 190,000 consensus, but the prior months’ gains were revised to 248,000 from 213,000. The unemployment rate ticked down to 3.9% from 4.0%, as expected. For the week, however, gold fell 0.87% — the fourth weekly decline — on the back of the continued strength of the US dollar and as the US Federal Reserve’s reiterated its decision to implement interest rate hikes in September and December this year. Earlier in the week, gold had sunk to its lowest level in nearly 17 months. On the other hand, copper ended Friday’s session higher at $2.76 but closed the week down 1.59%, as traders continued to fret over the impact of the US-China trade war on industrial metals. Also, workers at BHP Billiton’s (BHP) Escondida mine in Chile voted to go on strike after union workers rejected the company’s final wage offer. The union had earlier given BHP until Aug. 6 to improve its contract offer. Escondida is the world’s largest copper mine, and Chile is the top copper producer. Last year, workers at the mine staged a 44-day walk out over contract disputes, which also affected global copper markets. BHP is now reportedly looking at contingency plans ahead of the strike.

Agriculture commodities ended the week mixed, mostly weighed by trade war worries. Sugar had a weekly decline of 0.37% and settled at a price of $0.11 on Friday; coffee was at $1.08 per pound at Friday’s close, with a weekly decrease of 2.54%; and cocoa sank 8.28% lower for the week and closed Friday’s session at $2,046.  Among grains, corn was up 2.26% in the week and settled at $3.84 per bushel in Friday’s session; and soybeans rose 2.12% for the week, closing at $9.02 per bushel on Friday. Meanwhile wheat rose 5.96% for the week and settled at $5.80 per bushel at the end of Friday’s session following reports late Thursday that Ukraine might impose export limits for wheat; however, the post on social media platform Facebook by the Ukrainian deputy agriculture minister was misinterpreted as a total export ban when in fact, the announcement was for the country’s annual non-binding quota on wheat exports. Ukraine sets an annual export quota and gives guideline figures on volumes that are allowed to be exported each marketing year.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 0.15% for the week, compared with an increase of 0.25% in the prior week.

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Weekly Commodities ETF Report: Crude Edges Higher, Gold Slips Lower as Crude Oversupply Worries, Trade Tensions Ease

(MT Newswires) – Crude inched higher for the week, despite ending Friday’s session lower, as oversupply worries plaguing the markets eased somewhat following reports from the Energy Information Administration (EIA) indicating a larger-than-expected drop in US inventories. The EIA said Wednesday crude oil inventories dropped by more than 6.1 million barrels to 404.9 million barrels in the week ended July 20. Traders, however, remain cautious following reports Russia will up crude output by around 250,000 barrels a day. Also, the number of oil rigs operating in the US rose by three to 861, according to data from energy services firm Baker Hughes (BHGE), which tracked the seven-day period ending July 27. The combined oil and gas rig count in the US rose by two to 1,048, as gas rigs decreased by one to 186.

Over the last five days, light, sweet crude oil for September delivery was edged 0.98% higher and closed at $68.69 per barrel. In other energy futures, gasoline rose during the week, up 4.06% and settled at $2.11 per gallon at Friday’s close. Meanwhile, natural gas rose 1.79% this week and was up in Friday’s session at $2.78 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) rose 1.25% this week, from a decrease of 1.72% in the previous week.

Gold also ended the Friday session higher, settling at $1,232.70; for the week, gold fell 0.77% — the third weekly decline. Speculation about gradual rate hikes by the Federal Reserve have prompted traders to stay away from the yellow metal once again. Also, trade tensions have eased following the positive outcome from the trade talks between US President Donald Trump and EU Commission President Jean Claude Juncker earlier this week. Traders were also digesting the latest economic data: US Q2 gross domestic product hit a four-year high, but missed the consensus estimate as inventory accumulation was surprisingly weak. On the other hand, copper was up 1.75% this week, despite ending the Friday session in the red and settling at $2.80. Moreover, the gains follow a recent pledge between the US and the EU that aims to resolve the conflict stemming from the steel and aluminum tariffs that both sides had threatened to impose.

Agriculture commodities ended the week mixed following the U.S. and the EU’s move to de-escalate a transatlantic trade conflict. Sugar had a weekly decline of 2.25% and settled at $0.11 on Friday; coffee was at $1.10 per pound at Friday’s close, with a weekly decrease of 0.1%; and cocoa sank 4.44% for the week and closed Friday’s session at $2,233.  Among grains, corn was up 1.97% in the week and settled at $3.76 per bushel in Friday’s session; and soybeans rose 2.22% for the week, closing at $8.85 per bushel on Friday. Meanwhile, wheat rose 2.86% for the week and settled at $5.30 per bushel at the end of Friday’s session as traders digested several data releases from around the globe: Consultancy Strategie Grains, an agro-economic research and analysis bureau specializing in European and world grain and oilseed markets, said it is lowering its estimate for European soft wheat crop for 2018, now projecting wheat to be below 130 million tonnes versus 132.4 million tonnes estimated in early July, citing crop damage from dry and hot weather in recent weeks in northern and central parts of Europe. This would be the lowest soft wheat harvest in the EU since 2012. On the other hand, agriculture consultancy SovEcon reported wheat yields from Russia have declined to around a three-year low. Russia is the world’s top wheat exporter. And, back home in the US, hard red spring wheat in the southern half of North Dakota and adjacent areas of South Dakota are projected to have below average yields.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 0.25% for the week, compared with an increase of 0.73% in the prior week.

 

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Justin Hillstrom is a registered representative of ALPS Distributors, Inc.

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:  USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

We advise you to consider a fund’s objectives, strategies, risks, charges and expenses carefully before investing. The Prospectus contains this and other information. Download a copy of a fund’s Prospectus by clicking the following: SDCI. Please read any Prospectus carefully before investing

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc.

USO001762 Ex. 10/31/2018

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Weekly Commodities ETF Report: Crude Contends With Rising Output, Copper Struggles With Trade War Tensions

(MT Newswires) – – Crude ended in negative territory for the third straight week on concerns about rising supplies and amid fears that a downturn in major economies following an escalation of protectionist measures could hamper demand for the commodity. Prices remain supported by Saudi Arabia’s comments that the kingdom’s exports will likely fall next month and inventories might be squeezed in the third quarter. Saudi Arabia expects exports to drop by roughly 100,000 barrels per day in August compared with July. The kingdom’s OPEC Governor Adeeb Al-Aama dismissed market concerns over an oil glut as baseless. Back home, the Energy Information Administration reported a larger-than-expected 5.8 million barrels jump in US crude inventories in the week ended July 13. However, gasoline stockpiles declined by 3.2 million barrels for the week and distillate stockpiles dropped by 400,000 barrels. Meanwhile, the number of oil rigs operating in the US fell by five to 858, compared with 764 rigs a year earlier, energy services firm Baker Hughes (BHGE) reported on Friday. This was the biggest decline since late March.

Over the last five days, light, sweet crude oil for August delivery was down 0.38% and closed at $70.46 per barrel. In other energy futures, gasoline declined during the week, down 1.71% and settled at $2.03 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 0.04% lower this week and was down in Friday’s session at $2.73 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 1.72% this week, from a decrease of 1.43% in the previous week.

Gold also ended the Friday session higher, settling at $1,231.10, recovering from the one-year low it hit earlier in the week on the back of a stronger dollar. The stronger greenback was spurred by upbeat comments from US Federal Reserve Chairman Jerome Powell during his two days of testimony to Congress. However, the yellow metal edged higher as the dollar weakened against most major currencies after US President Donald Trump stated his disagreement with the Fed’s decision on interest rate hikes. For the week, gold fell 0.87%. Similarly, copper continued to decline this week, dropping 0.70% despite ending the Friday session higher and settling at $2.76. It also sank to one-year lows on Thursday over concerns that the continued trade war could stunt demand for raw materials. In an interview with CNBC, Trump spoke about imposing tariffs on an additional $500 billion worth of Chinese goods to the US if China decides not to back down on its trade policies. And, the EU, Mexico and Canada have said they will retaliate if Trump imposes tariffs on automobiles. G-20 finance ministers and central bankers will be meeting in Buenos Aires this weekend for the first time since China and the US put tariffs on $34 billion of each other’s goods.

Agriculture commodities ended the week higher, shrugging off the sting of trade war tensions between the US and its major trading partners: sugar had a weekly rise of 1.37% and settled at a price of $0.11 on Friday; and coffee was at $1.10 per pound at Friday’s close, with a weekly increase of 1%. Among grains, corn was up 4.17% in the week and settled at $3.69 per bushel in Friday’s session; wheat rose 3.72% for the week and settled at $5.16 per bushel at the end of Friday’s session; and soybeans rose 3.77% for the week, closing at $8.65 per bushel on Friday. Meanwhile cocoa surged 7.12% higher for the week and closed Friday’s session at $2,322. Prices had increased following disruptions of cocoa farming in the Northwest and Southwest of Cameroon, the fifth-largest cocoa grower. There is an escalating conflict between government forces and rebels demanding independence for English-speaking territories, forcing cocoa farmers to “escape into the bushes,” Bloomberg reported Thursday. In 2017, Cameroon’s cocoa production accounted for 5.2% of global output, according to the International Cocoa Organization.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 0.73% for the week, compared with a decline of 2.18% in the prior week.

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Weekly Commodities ETF Report: Trade War Worries Continue to Weigh on Commodities, With Copper, Soybeans Still Among Major Losers

(MT Newswires) – – Commodities and funds tracking them did not escape the trade war jitters this week, as the US government’s recent actions raised the stakes for a full-blown trade war with China. President Donald Trump unveiled plans Wednesday for more trade restrictions on Chinese imports — $200 billion tariffs to be imposed on imported Chinese goods. Trade war concerns were also exacerbated by reports on Friday that China’s trade surplus with the US hit the highest since December. It widened to a record monthly high of $28.97 billion, while the overall trade surplus reached $41.61 billion for the month of June.

Crude ended in negative territory for the week, starting its plunge about mid-week due to increased OPEC production and a strong US dollar. The Energy Information Administration also reported Wednesday that US oil stockpiles plummeted a massive 12.6 million barrels to the lowest since February 2015. The American Petroleum Institute on Tuesday had reported a drop of 6.8 million barrels. In news abroad, Libya is ramping up shipments from four key ports, and Saudi Arabia is turning on its spigots faster than initially expected. The increased production from Middle Eastern countries and Russia, however, “comes at the expense of the world’s spare capacity cushion, which might be stretched to the limit,” the Paris-based International Energy Agency noted. Meanwhile, the number of oil rigs operating in the US was flat at 863, energy services firm Baker Hughes (BHGE) reported on Friday. The report tracked the seven-day period ending July 13. The combined oil and gas rig count in the US climbed by two to 1,054, as gas rigs increased by two to 189.

Over the last five days, light, sweet crude oil for August delivery was down 4.45% and closed at $71.01 per barrel. In other energy futures, gasoline declined 1.08% during the week and settled at $2.08 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 3.09% lower this week and was down in Friday’s session at $2.72 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 1.43% this week, from a decrease of 1.59% in the previous week.

Gold also ended the Friday session lower, settling at $1,241.20 and extending yearly lows to finish the week down 1.15%. The slump in the yellow metal’s prices was attributed to a strong dollar and expectations the Federal Reserve will raise interest rates twice more in 2018, even as consumer price inflation rose marginally. The Labor Department said Thursday that its consumer price index inched up by 0.1% in June after rising by 0.2% in May. Economists had expected consumer prices to increase by 0.2%.  On Wednesday, the Labor Department said its producer price index for final demand rose by 0.3% in June after climbing by 0.5% in May. Economists had expected prices to edge up by 0.2%. Copper, on the other hand, continued to decline this week, dropping 1.47% and settling at $2.78 at the close of Friday’s regular session. This is the fifth straight week that prices for the red metal have been declining due to trade war worries as well as weaker demand. An increase in supply has also been of concern following news that Freeport-McMoRan (FCX) and Rio Tinto (RIO) are planning to buy a controlling stake in Grasberg, the second-largest copper mine in the world, located in the province of Papua in Indonesia.

Agriculture commodities ended the week sharply lower: sugar had a weekly decline of 5.13% and settled at a price of $0.11 on Friday; coffee was at $1.10 per pound at Friday’s close, with a weekly drop of 3.59%; meanwhile cocoa edged 1.70% higher for the week and closed Friday’s session at $2,513. Among grains, corn was down 4.97% in the week and settled at $3.55 per bushel in Friday’s session; wheat sank 3.26% for the week and settled at $4.97 per bushel at the end of Friday’s session; and soybeans fell 6.68% for the week, near the lowest levels since December 2008 and closing at $8.34 per bushel on Friday. The US Department of Agriculture said Thursday that it forecasts US soybean supplies to rise to the highest ever as the trade war with China is expected to cut into exports. China had already cut its own forecast for soybean imports by 1.8 million tonnes to 93.85 million for the years 2018 and 2019. The largest buyer of soybeans also warned that the higher prices brought on by the trade conflict with the US could lower demand, with farmers looking for alternatives for animal feed. Soybean meal has been used as, and considered the most, important protein source to feed livestock and poultry all over the world.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) fell 2.18% for the week, compared with an increase of 0.10% in the prior week.

 

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Weekly Commodities ETF Report: Copper, Soybeans Among Hardest Hit by US-China Trade Conflict

(MT Newswires) – – Crude ended in negative territory for the week, as a planned increase in the Organization for Petroleum Exporting Countries’ (OPEC) output was followed by a surprise increase in US inventories and higher oil rig count. Last week, OPEC ministers had announced that they approved an increase in oil supplies, but US President Donald Trump has called on Saudi Arabia, one of the most influential countries in the group, to increase the production cap further and to help lower oil prices. The president had released a series of tweets this week urging OPEC to “reduce pricing now!” Meanwhile, the number of oil rigs operating in the US rose by five to 863, according to data from energy services firm Baker Hughes (BHGE), which tracked the seven-day period ending July 6. The combined oil and gas rig count in the US also climbed by five to 1,052, as gas rigs were flat at 187. On Thursday, data from the Energy Information Administration showed that US crude inventories climbed by 1.2 million barrels over a week to June 29 as imports grew and refineries cut output. The jump compared with expectations for a 3.5 million-barrel drop in a Reuters’ survey of analysts.

Over the last week, light, sweet crude oil for August delivery was down 0.58% and closed at $73.80 per barrel. In other energy futures, gasoline declined during the week, down 1.93% and settled at $2.11 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 2.19% lower this week and was down in Friday’s session at $2.86 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 1.59% this week, from an increase of 0.51% in the previous week.

Gold ended the Friday session lower, settling at $1,255.80 to finish the week up 0.15%, as traders weighed on the latest economic data releases as well as focusing on the Federal Reserve’s minutes, released earlier this week. The minutes revealed that “[n]egative risks to economy from US trade policy have intensified” but that the central bank still believed the economy is doing well. It still expects that its plan to increase interest rates two more times this year will continue. Meanwhile, reactions to the relatively upbeat employment report from the Labor Department on Friday were muted. The report said nonfarm payroll employment jumped by 213,000 jobs in June after surging up by an upwardly revised 244,000 jobs in May. However, the unemployment rate rose to 4.0% in June from 3.8% in May, as temporary school jobs ended for the summer. Copper, on the other hand, continued to plunge this week, dropping 4.94% and settling at $2.82 at the close of Friday’s regular session. The red metal has been one of the worst hit by the trade conflict between the US and China — but other factors in the last few months have also contributed to its declining prices — including the strengthening of the US dollar, weakening demand from China, and a global surplus in refined copper. According to the International Copper Study Group (ICSG), the surplus was 55,000 tonnes in March 2018, compared with 87,000 tonnes in February. The group also reported that the surplus for the first three months of the year was 1,53,000 tonnes of refined copper, compared with 84,000 tonnes in the same period a year earlier.

Agriculture commodities ended the week sharply lower — again, weighed by the escalating trade war between the world’s two largest economies: sugar had a weekly decline of 5.96% and settled at a price of $0.12 on Friday; coffee was at $1.14 per pound at Friday’s close, with a weekly drop of 1.13%; and cocoa fell 1.31% for the week and closed Friday’s session at $2,465. Among grains, corn was up 0.27% in the week and settled at $3.73 per bushel in Friday’s session; and, wheat rose 2.34% for the week and settled at $5.15 per bushel at the end of Friday’s session. Meanwhile, soybeans rose 1.68% for the week, closing at $8.95 per bushel on Friday even as China canceled its orders for US soybeans earlier this week. About 1.14 million tons of soybeans were due to be shipped by the end of August. China, which is the largest soybean buyer in the world, has contracted to increase its purchases of soybeans from Brazil and has state reserves of domestic and imported soybeans — although the volume of these reserves has not been disclosed. Some analysts believe that there might be a shortage in soybean supplies by the fourth quarter of this year or first quarter of next if the country will continue to cancel shipments of soybeans from the US.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 0.10% for the week, compared with a surge of 20.07% in the prior week.

 

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Weekly Commodities ETF Report: Crude Jumps to Above $74/Barrel as Iran Faces Threats to Output, US Economic Sanctions

(MT Newswires) – -Crude ended in positive territory for the week, and ended the Friday session having reached above $74 for the first time since November 2014, after threats to output from Iran, the fifth-largest oil producer in the world, resurfaced. Media reports had also said that the US is aiming to carry out its threat of stopping Iranian oil exports by re-imposing economic sanctions on Tehran, and expects major oil producers in the Organization of the Petroleum Exporting Countries such as Saudi Arabia and Russia to make up the shortfall. Meanwhile, Baker Hughes (BHGE) reported that the number of oil rigs operating in the US fell for the second week, registering the biggest decline in 33 months. The number of oil rigs operating in the US fell by four to 858; the combined oil and gas rig count in the US fell by five to 1,047 as gas rigs slipped by one to 187. Earlier in the week, the International Energy Agency said on Wednesday that US crude stockpiles plunged by 9.89 million barrels, the largest one-week draw since September 2016. The slump compared with expectations for a 2.6 million-barrel drop in a Reuters’ survey of analysts.

Over the last five days, light, sweet crude oil for August delivery was up 7.23% and closed at $74.15 per barrel. In other energy futures, gasoline rose during the week, up 4.53% and settled at $2.15 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 0.48% lower this week and was down in Friday’s session at $2.92 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) rose 0.51% this week, from a decline of 0.05% in the previous week.

Gold ended Friday lower, settling at $1,254.50 to finish the week down 1.34%, as traders weighed a flurry of economic news from around the globe. Personal income in the US increased in line with economist estimates in the month of May, although the report also showed weaker-than-expected growth in personal spending. The report said personal income climbed by 0.4% in May after edging up by a downwardly revised 0.2% in April. In Europe, a last-minute deal on immigration may have saved Angela Merkel’s government in Germany. Also, Eurozone inflation rose to 2% in June, in line with the forecast, and up from 1.9% in May on food and energy prices. The European Central Bank targets below, but close to 2%. Copper, meanwhile, settled at $2.97 at the end of Friday’s session, and was down 2.69% for the week. Earlier in the week, the red metal sank to a nine-month low after hitting four-year highs just three weeks ago. The pullback was brought on by a stronger dollar and continued fears over an escalating trade war between the US and China. Softening demand as well as a stronger supply also put pressure on copper prices.

Agriculture commodities ended the week mostly lower: sugar had a weekly decline of 1.69% and settled at a price of $0.12 per ton on Friday; coffee was at $1.15 per pound at Friday’s close, with a weekly drop of 1.75%; and cocoa fell 3.39% for the week and closed Friday’s at $2.512. Among grains, corn was down 1.66% in the week and settled at $3.71 per bushel in Friday’s session; and soybeans fell 4.19% for the week, closing at $8.80 per bushel on Friday. Wheat saw a large decline, tumbling 7.08% for the week and settling at $5.01 per bushel at the end of Friday’s session. The increase in prices have been due to  ample supplies around the world, as well pressure from the ongoing US winter wheat harvest. The US Department of Agriculture had reported Monday that the US winter wheat harvest was 41% complete, while the Kansas harvest was 52% finished, which has exceeded the state’s five-year average of 32%.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 20.07% for the week, compared with a decline of 0.69% in the prior week.

 

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Weekly Commodities ETF Report: Oil Surges Higher as OPEC Implements Limited Increase in Oil Production; Trade War Fears Continue to Plague Copper, Soybeans

(MT Newswires) – – Crude rallied higher despite some weakness earlier early last week, as the Organization of Petroleum Exporting Countries said it will try to increase global output by about 1% in coming months. The plan was adopted by OPEC’s 14 members, with Iran ending up agreeing to the plan hatched by its regional rival Saudi Arabia. The plan is set to be formally adopted Saturday in an OPEC meeting with non-OPEC countries in Vienna. Friday’s decision was taken in “the mutual interest of producing nations” and “the efficient, economic and secure supply to consumers,” OPEC said in a statement.

Over the last week, light, sweet crude oil for August delivery was up 7.90% and closed at $68.58 per barrel. In other energy futures, gasoline rose during the week, up 2.59% and settled at $2.05 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 2.61% lower this week and was weaker in today’s session at $2.95 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 0.05% last week, from a decline of 2.66% in the previous week.

Gold ended the Friday lower, settling at $1,270.70 to finish the week down 0.78%, weighed down by a stronger dollar. On Thursday, the yellow metal sank to six-month lows following Federal Reserve Chairman Jerome Powell’s comments that “the case for continued gradual increases in the federal funds rate is strong.”  Overseas, the Bank of England decided to keep the key interest rate unchanged, in a split vote, and stood unanimous on quantitative easing. By Friday, IHS/Markit data signaled robust US economic growth for the second quarter. The IHS manufacturing index slipped to a seven-month low of 54.6 from 56.5. Any reading over 50 signals expansion. The flash PMI surveys add to evidence that the US economy is enjoying a strong second quarter. Despite growth cooling slightly in June, the latest numbers round off the best quarter for three years. Meanwhile, copper settled at $3.05 at the end of Friday’s session, and was down 3.41% for the week — near three week lows. Prices continued to be weighed by concerns over a possible trade war between the US and China, which could affect the demand for metals in China, the world’s largest metal consumer. These fears have been amplified by recent developments, after US President Donald Trump on Thursday directed US Trade Representative Robert Lighthizer to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10%; and on Friday, Trump said he would impose new tariffs on automobiles from the European Union unless the EU removes tariffs and trade barriers placed on the United States.

Agriculture commodities were also being pressured by these trade war jitters, with soybeans for the fourth straight week trading in the red, sinking to near 10-year lows. Soybeans were down 1.21%, closing at $9.16 per bushel on Friday. Among other grains, corn was down 1.63% in the week and settled at $3.78 per bushel in Friday’s session but the outlook for the corn crop has become favorable following wet and warm weather for the so-called US Corn Belt. Rains have soaked fields in South Dakota, Minnesota and Iowa, with some areas suffering flooding. More storms are expected in the following week. Just last week, the US Department of Agriculture had given the corn crop and soybean crop their strongest ratings in recent decades: the US corn crop was given a 78% rating and the soybean crop, a 73% crop rating. Meanwhile, sugar had a weekly decline of 2.90% and settled at a price of $0.12 per ton on Friday; coffee was at $1.17 per pound at Friday’s close, with a weekly drop of 0.51%; and cocoa fell 0.44% for the week and closed Friday’s at $2,514.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) fell 0.69% for the week, compared with a decline of 1.73% in the prior week.

 

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

 

 

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CarMax Shares Jump to Record as Net Profit, Sales Top Prior Year Figures, Expectations

1:12 PM, Jun 22, 2018 — CarMax Inc (KMX) shares surged to a record after the company reported better-than-expected financial results on Friday.

The auto retailer reported fiscal first-quarter net profit of $1.33 a share, up from $1.13 share a year earlier and higher than the $1.21 consensus provided by Capital IQ. Net sales for the quarter ended May 31 were $4.79 billion, up from $4.54 billion reported for the same period last year, topping the $4.60 billion Street estimate.

Quarterly used vehicle sales rose 4.6% year-over-year to $4 billion. Wholesale vehicle sales jumped 12% to $617.7 million. Sales of extended protection plans gained 9% to $100.1 million, the company said. Used unit sales in comparable stores declined 2.3% while total used unit sales rose 1.6%.

“The comparable store sales performance primarily reflected lower store traffic, partially offset by improved conversion, as well as a tough comparison as we lapped our strongest prior year performance,” said Bill Nash, president and chief executive officer. “While our comparable store unit sales performance improved significantly from the February 2018 quarter, we believe macro pricing factors still had some effect on our first quarter sales.”

Shares were up 13% on Friday.

CarMax Auto Finance income increased 5.7% to $115.6 million, reflecting an 8.7% increase in averaged manageable receivables and a slightly lower interest margin. Loan loss provisions totaled $30.9 million, or 1.1% of average managed receivables, the company said. The allowance for loan losses as a percentage of ending managed receivables remained relatively stable at 1.13% as of May 31 compared with 1.18% a year earlier.

Gross profit increase almost 2% to $661.3 million, and used-car profit rose 1.7%. Profit per unit was steady at $2,215 versus $2,212 in the same quarter a year earlier. Wholesale vehicle gross profit increased 9.6% versus the prior year’s quarter, driven by a comparable increase in wholesale unit sales.

SG&A expenses, however, rose 8.6% to $438.2 million partly due to a 10% increase in store base since the start of last year’s first quarter, which represents an 18 additional stores, and an $8.9 million increase in stock-based compensation expenses.

“We also continued to update our technology platforms and support our core strategic initiatives as part of our focus on improving the customer experience,” the company said. SG&A costs per used unit was $2,209 in the current quarter, up $143 year-over-year, largely reflecting the deleverage associated with the decline in comparable store used unit sales. Stock-based compensation expenses increased SG&A per unit by $43.

CarMax said during the first quarter it opened three stores total in Dallas, Miami and Greenville, North Carolina. Subsequent to the end of the quarter, it opened its second store in Albuquerque.

Companies: CarMax Inc
Price: 80.28 Price Change: +9.23 Percent Change: +12.99

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