USCF logo

Weekly Commodities ETF Report: Crude Extends Weekly Gains on Supply Concerns Ahead of US Sanctions on Iran; Gold Rises as Dollar Weakens Following Sept Payrolls Report

(MT Newswires) -Crude ended Friday’s session higher, as the oil market grappled with the spare capacity needed to replace Iranian barrels next month. Although Russia and Saudi Arabia reportedly made a secret pact in September to increase output until December to partially make up for the loss of Iranian oil, it is feared that with little spare capacity at their disposal, OPEC and major non-OPEC producers may not be able to offset the likely drop in supply from early November. These supply concerns outweighed a surge in US inventories that was above what analysts had forecast in a weekly survey. The Energy Information Administration on Wednesday reported that crude supplies in the US surged by almost 8 million barrels last week, the biggest jump since March 2017. The increase was four times the level of expectations in a Reuters’ survey of analysts. This compares with the American Petroleum Institute’s report last Tuesday that US commercial crude inventories rose by 907,000 barrels to 400.9 million. Finally, Baker Hughes (BHGE) said late Friday the number of oil rigs operating in the US fell by two to 861. The combined oil and gas rig count in the US also slipped by two 1,052 as gas rigs were flat at 189.

Over the last five days, light, sweet crude oil for November delivery was up 1.09%, settling at $74.34 per barrel at the close of Friday’s session. In other energy futures, gasoline declined during the week, edging 0.15% lower and settling at $2.09 per gallon on Friday. Meanwhile, natural gas rose 5.03% this week but was down Friday at $3.14 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) rose 0.97% this week, from an increase of 1.04% in the previous week.

Gold ended the Friday session higher, settling at $1,205.60 and eventually ending the week up 0.95%. The yellow metal bounced back from losses earlier in the week as the dollar weakened a bit after data showed the US economy saw a less-than-expected addition in employment in September.  The US Labor Department said that nonfarm payroll employment climbed by 134,000 jobs in September, while economists had expected an increase of about 185,000 jobs. The unemployment rate fell to 3.7% in September from 3.9% in August. Economists had expected the unemployment rate to edge down to 3.8%.  On the other hand, copper ended Friday’s session lower at $2.76, and fell 1.48% for the week.  The red metal’s prices were pressured by news that the Chinese manufacturing sector had slowed down in September on weaker domestic and international demand, showing the initial effects of US tariffs on China’s economy. The official China Federation of Logistics and Purchasing’s monthly purchasing managers index revealed that manufacturing activity decelerated to 50.8 from August’s 51.3.

Agriculture commodities ended the week mostly mixed. Sugar had a weekly increase of 12.68% and settled at a price of $0.13 per pound on Friday; coffee was around $1.09 per pound at Friday’s close, up 6.54% for the week; and cocoa fell 0.78% for the week and closed Friday’s session at $2,024 per tonne.  Among grains, wheat fell 2.45% and settled at $5.21 per bushel at the end of Friday’s session, while corn was up 3.23% in the week and settled at $3.68 per bushel in Friday’s session, hitting a two-month high as a forecast for rains sparked concerns over harvest delays. Heavy rains are expected across much of the western and central Midwest over the next week, likely affecting mature corn in major producing states including Iowa, Illinois and Minnesota. Meanwhile, soybeans rose 2.96% for the week, closing at $8.69 per bushel on Friday, following the Commerce Department’s report on the US trade deficit, reflecting an increase in imports and a decrease in exports. The data said the trade deficit widened to $53.2 billion in August from a revised $50.0 billion in July. Exports slipped 0.8% to $209.4 billion in August. Soybeans are among exported products that saw the sharpest decline, with shipments falling 28% due to retaliatory foreign tariffs on US crops.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 1.63% for the week, compared with an increase of 1.00% 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. 

Get Live Briefs Pro

USCF logo

Weekly Commodities ETF Report: Crude Higher As Trump Puts Pressure on OPEC to Lower Crude Prices Ahead of Meeting

(MT Newswires) – Crude ended Friday’s session higher, extending gains from earlier in the week, when prices rose to a two-month high following the Energy Information Administration’s report that crude oil inventories dropped 2.057 million barrels last week, short of a 2.74-million-barrel decline expected by analysts. This compares with the American Petroleum Institute’s report last Tuesday that showed crude inventories rose by 1.2 million barrels last week. Meanwhile, Baker Hughes (BHGE) reported Friday that the active US rig count was down by one to 866 after last week’s jump, but still well above the year-earlier level of 744. Another factor in the uptick in crude prices is the anticipated decline in Iranian supplies as US sanctions against the Middle Eastern country take full effect in November. Traders are looking ahead to the meeting between the Organization of the Petroleum Exporting Countries and its allies at Algeria this weekend, to discuss production increases as US sanctions restrict Iranian exports. On Thursday, US President Donald Trump called on OPEC to lower oil prices, piling up pressure on the cartel.

Over the last five days, light, sweet crude oil for October delivery rose 3.05%, settling at $70.78 per barrel at the close of Friday’s session. In other energy futures, gasoline rose during the week, up 1.91% and settled at $2.00 per gallon on Friday. Meanwhile, natural gas rose 8.37% this week and was up Friday at $297 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) rose 1.75% higher this week, from an increase of 0.10% in the previous week.

Gold ended the Friday session lower, settling at $1,201.30 but ended the week 0.41% higher. The US dollar sank to a three-month low on Thursday, but by Friday the greenback moved up amid easing worries over the US-China trade war’s impact on the global economy. Traders are looking ahead to the Federal Reserve’s monetary policy meeting next week. It is widely expected that the Federal Reserve will certainly hike rates by a quarter of a point next week. The focus will really be on the central bank’s views on future hikes. On the other hand, copper ended Friday’s session higher at $2.86, and rallied 8.99% for the week as trade tensions between the US and China eased. Traders are also seeing signs of a sustained global deficit as well as an improved outlook for market fundamentals.

Agriculture commodities ended the week mostly mixed. Sugar had a weekly decline of 2.66% and settled at a price of $0.12 on Friday; coffee was around $0.99 per pound at Friday’s close, essentially flat with the prior week; and cocoa fell 2.84% for the week and closed Friday’s session at $2,167.  Among grains, corn was up 1.78% in the week and settled at $3.57 per bushel in Friday’s session; and wheat increased 2.10% and settled at $5.21 per bushel at the end of Friday’s session. Meanwhile, soybeans rose 2.32% for the week, closing at $8.47 per bushel on Friday.  This is the biggest weekly gain in a month for soybeans after strong demand helped prices recover from a 10-year low. The US Department of Agriculture reported that weekly US soybean export sales topped 900,000 tonnes, exceeding trade expectations. However, lingering concerns over the US-China trade spat could still cap soybean prices.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 1.21% for the week, compared with a decline of 1.20% 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, UGAUHNor 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. 

Premium Financial News

USCF logo

Weekly Commodities ETF Report: Metals, Soft Commodities Lower on Inflation Data, Deteriorating US-China Trade Talks; Crude Bucks Downward Trend on Drop in US Supplies

(MT Newswires) – Most commodities were in the red amid tame inflation data released Friday as well as mixed developments in the ongoing trade war between the US and China. On Wednesday, US Treasury Secretary Steven Mnuchin reportedly sent an invitation for talks to senior Chinese officials, proposing a meeting in the next few weeks. However, a tweet from President Donald Trump on Thursday denied claims made in the Wall Street Journal that the US is under pressure to make a deal with Beijing. Trump added that the US “will soon be taking in billions in tariffs.” By Friday, Trump had told aides to go ahead with the latest round of trade restrictions — $200 billion in tariffs against Chinese imports — dimming the possibility for productive trade talks to proceed.

Gold ended the Friday session lower, and settling at $1,201.10; likewise, it ended the week 0.23% lower, reversing gains from earlier in the week. Gold had reached one-month highs as the US dollar turned weak after data released by the Labor Department showed a modest increase in US consumer prices in the month of August. The lower-than-expected increase in inflation may prompt the Federal Reserve to stop with just one more rate hike this year, meaning there may not be a rate hike in December. However, the dollar subsequently recovered some lost ground and the yellow metal pared its gains. On the other hand, copper ended Friday’s session lower at $2.65, and was down 0.08% for the week, as the uncertainty surrounding the trade talks between Washington and Beijing continued to spark fears that metals demand from China would decline more than expected. Despite an increase in Chinese industrial output, traders are concerned that the trade dispute would affect China’s growth. These fears have helped push copper prices lower — down about 20% from June highs. China is the largest metals consumer, and copper is extensively used in power and construction industries.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) edged 0.10% higher this week, from a decline of 1.14% in the previous week.

Agriculture commodities ended the week mostly lower, led by grains. Sugar had a weekly increase of 0.18% and settled at a price of $0.11 on Friday; coffee was around $1 per pound at Friday’s close, ending the week down 2.44%; and cocoa fell 1.73% lower for the week and closed Friday’s session at $2,219.  Among grains, corn was down 4.35% in the week and settled at $3.52 per bushel in Friday’s session; and soybeans fell 1.72% for the week, closing at $8.31 per bushel on Friday. Meanwhile, wheat declined 0.24% and settled at $5.12 per bushel at the end of Friday’s session. This is the second weekly drop for wheat after the US Department of Agriculture raised its monthly supply and demand report forecast for the Russian wheat harvest to 71 million tonnes, from the prior forecast of 68 million tonnes. The increase in the USDA’s expectations came as no surprise for traders, as a drought in Europe has sparked fears of export curbs.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) fell 1.20% for the week, compared with a decline of 0.51% in the prior week.

Bucking the downward momentum of most commodities, crude ended Friday’s session higher, following the Energy Information Administration’s report of a notable drop in crude inventories in the US. It reported that crude oil inventories dropped by 5.296 million barrels in the week ended Sept. 7, much more than what analysts had expected. This compares with the American Petroleum Institute’s report last Tuesday that showed crude inventories decreased by 8.636 million barrels last week. Meanwhile, it is feared that hurricane Florence, which is striking South and North Carolina and causing flooding and power interruptions, may result in the shutting down of Colonial Pipeline. As people stocked up gasoline ahead of the storm, demand for crude shot up. To make up for the shortfall in supply due to sanctions against Iranian oil, US President Donald Trump has been encouraging Russia and Saudi Arabia to increase crude output. On the other hand, the International Energy Agency reported that global oil supply reached a record high of 100 million barrels per day in August. Output from OPEC countries and Russia rose to a nine-month high. However, the agency noted that production may drop going forward due to falling output from Iran and Venezuela. The last bit of data come from Baker Hughes (BHGE), which reported Friday that active US rig count was at 867 in the week, up from 860 a week earlier and compared with 749 in the same period of 2017.

Over the last five days, light, sweet crude oil for October delivery rose 1.61% higher, settling Friday at $68.99 per barrel. In other energy futures, gasoline rose during the week, up 0.30% and settled at $1.96 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 1.36% this week and was down in Friday at $2.75 per 1 million British thermal unit.

 

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, UGAUHNor 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. 

Get Live Briefs Pro

USCF logo

Weekly Commodities ETF Report: Crude Higher on Risk of Supply Disruptions; Gold Rallies on Weaker Dollar as Fed Reiterates Plans for Interest Rate Hikes

(MT Newswires) – – Crude ended Friday’s session in positive territory as investors assessed the risk of supply disruptions amid a strike in the North Sea oil and gas fields. A scheduled industrial action over working rotas will go ahead, UK union Unite said in a statement, after talks between French oil refiner total and workers on three of its North Sea oil and gas platforms broke down on Thursday. Supply concerns have also mounted, with US sanctions against Iranian oil exports set to take full effect in November. It is expected the sanctions could significantly impact global supply and exhaust the world’s spare oil capacity. Prices have also been supported by shrinking US crude inventories. Supply data from the Energy Information Administration showed domestic crude supplies fell by 5.8 million barrels for the week ended Aug. 17. This compares with the American Petroleum Institute’s report last Tuesday that U.S. crude supplies fell by 5.2 million barrels. And, Baker Hughes (BHGE) reported active US rigs count fell by nine to 860 — the biggest drop in more than two years. This compares with 869 in the prior period, and 759 in the same period of 2017. Overall US count, including gas rigs, contracted by 13 to 1,044, but that’s still above the year ago tally of 940.

Over the last five days, light, sweet crude oil for October delivery jumped 5.09%, at $68.72 per barrel. In other energy futures, gasoline rose during the week, up 4.67% and settled at $1.98 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 1.22% this week and was down Friday at $2.91 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) rose 0.84% this week, from an increase of 0.44% in the previous week.

Gold ended the Friday session higher, settling at $1,213.30. Except for modest losses in Thursday’s session, the yellow metal saw positive momentum to end the week higher, up 1.69% on the back of the dollar’s decline. The US dollar sank to a three-week low as market participants digested US Federal Reserve Chairman Jerome Powell’s Jackson Hole, Wyo. speech. Powell said more increases in the benchmark US lending rate were likely if the recent strong pace of growth in wages and jobs continued. The Federal Open Market Committee’s consensus is the “gradual process of normalization remains appropriate” as marked by rate hikes and a decline in the assets bought during the financial crisis to shore up the world’s biggest economy, Powell said. Earlier this week, US President Donald Trump reiterated his criticism of the Fed’s monetary policy, saying he was “not thrilled” with the Fed for raising rates. It remains to be seen whether Powell would respond to Trump’s criticism. On the other hand, copper ended Friday’s session higher at $2.72 and closed the week up 1.31% — its best weekly end since the end of July, with traders shrugging off the lack of progress in the US-China trade negotiations. The optimism generated by the trade talks between the two largest global economies earlier this week fizzled, as another round of tariffs from both countries were implemented.

Agriculture commodities ended the week mixed. Sugar had a weekly increase of 0.69% and settled at a price of $0.10 on Friday; coffee was at $1.04 per pound at Friday’s close, ending the week mostly flat; and cocoa jumped 9.96% higher for the week and closed Friday’s session at $2,364.  Among grains, corn was down 4.22% in the week and settled at $3.62 per bushel in Friday’s session; and soybeans fell 4.82% for the week, closing at $8.55 per bushel on Friday. Meanwhile, wheat fell 7.64% for the week — its worst week in the last two years — and settled at $5.36 per bushel at the end of Friday’s session. U.S. export sales of wheat have slowed down, with the U.S. Department of Agriculture reporting that exports were at 239,800 tons, below a range of trade expectations for 450,000 to 850,000 tons. Despite this, some traders have projected a lift in wheat prices due to global supply risks. Hot weather in other wheat-producing countries could affect wheat harvests and production.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) fell 1.74% for the week, compared with an increase of 1.88% 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, UGAUHNor 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.

Get Live Briefs Pro

USCF logo

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. 

Get Live Briefs Pro

USCF logo

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. 

 

Get Live Briefs Pro

USCF logo

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. 

USCF logo

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

USCF logo

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. 

Get Live Briefs Pro

USCF logo

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. 

Premium Financial News