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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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Weekly Commodities ETF Report: Renewed Trade War Jitters Weigh on Precious Metals, Agricultural Commodities; Oil Slumps on Higher Crude Supplies

(MT Newswires) – – Crude ended in negative territory for the week, as the the possibility of a higher crude supply continued to rattle global markets. Next week, the Organization of Petroleum Exporting Countries (OPEC) will hold a meeting where heavyweights Russia and Saudi Arabia will probably signal an increase in production, ending a policy of curtailing output to remove excess supply. Saudi Arabia is looking at raising production by 500,000 to 1 million barrels per day (bpd) and Russia is mulling lifting it by as much as 1.5 million barrels a day, according to media reports. However, certain OPEC members such as Iran and Venezuela look to be resistant to the move, and so the increase may not be as much as Saudi Arabia and Russia want. In the US, Baker Hughes (BHGE) reported that the number of oil rigs operating in the US over a rolling seven-day period ending June 15 rose by one to 863, its highest level since March 13, 2015. The combined oil and gas rig count in the US fell by three to 1,059 as gas rigs slipped by four to 194. Expectations for the increase in crude supplies had been bolstered earlier in the week by the International Energy Agency (IEA), which revised up its estimate for 2018 non-OPEC production growth to 2 million bpd and a “bumper growth” of 1.7 million bpd in 2019. The US shows by far “the biggest gain” in output, about 75% of the total across 2018 and 2019, the IEA noted.

Over the last five days, light, sweet crude oil for July delivery was down 1.4% and closed at $65.06 per barrel. In other energy futures, gasoline fell during the week, down 4.42% and settled at $2.01 per gallon at the close of Friday’s session. Meanwhile, natural gas rose 3.89% higher this week and was higher in Friday’s session at $3.02 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 2.66% this week, from an decline of 0.09% in the previous week.

Gold ended the Friday lower, settling at $1,278.50 to finish the week down 1.62%, and reversing mid-week gains as the dollar continued to rise amid rekindled trade war fears. President Donald Trump approved tariffs on about $50 billion of Chinese goods, as the US ratcheted up its trade fight with Beijing over China’s alleged pressure on US firms to transfer technology to Chinese partners. China is expected to retaliate with its own tariffs in return. Earlier in the week, the yellow metal held modest gains despite a much bigger-than-expected increase in US retail sales in the month of May. The Commerce Department said retail sales jumped by 0.8% in May after climbing by an upwardly revised 0.4% in April. That will likely result in US GDP above 4% in the second quarter. The Federal Reserve said this week that it intends to raise interest rates twice more in 2018 in order to prevent the economy from overheating. Copper, meanwhile, settled at $3.14 at the end of Friday’s session, and was down 5.08% for the week — the biggest weekly drop since April. Throughout the week the markets have been grappling with concerns over the slowing of growth, particularly in China, which is the top metals buyer. The new round of US tariffs on Chinese goods could put more pressure on China’s economy. This is coupled with China’s weaker-than-expected industrial output, investment and retail sales for May.

Agriculture commodities ended the week mostly lower: sugar had a weekly decline of 1.36% 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 1.58%; and cocoa rose 3.71% for the week and closed Friday’s at $2,519. Among grains, corn was down 3.46% in the week and settled at $3.82 per bushel in Friday’s session; and wheat was down 4.86% for the week and settled at $5.13 per bushel at the end of Friday’s session. Soybeans took another weekly tumble, down 6.11%, closing at $9.31 per bushel on Friday as most traders saw the fresh round of tariffs on Chinese goods as largely negative for the soybean market. China could impose its own tariffs, particularly on agricultural products like soybeans and beef. Previously, China had threatened to impose a 25% tariff on American soybean imports.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) fell 1.73% for the week, compared with a decline of 1.84% 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 Slips Lower on Higher US Output, Possible Venezuela, Iran Production Cuts; Gold Sees Weekly Gain on Trade War Jitters Ahead of G7 Summit

(MT Newswires) – -Crude ended in negative territory for the week, with the weakness in oil prices as traders mulled signs that the US again inched closer to becoming the world’s largest oil producer; this, however, was counterbalanced by risks to the global output from geopolitical worries in Iran and cuts in Venezuela. Data from energy services firm Baker Hughes (BHGE) showed the number of oil rigs operating in the US over a rolling seven-day period ending June 8 rose by one to 862, its highest level since March 13, 2015. Earlier in the week, the EIA reported that domestic supplies of natural gas rose by 92 billion cubic feet for the week ended June 1. The increase was in line with average expectations of analysts surveyed by S&P Global Platts. Total stocks now stand at 1.817 trillion cubic feet, down 799 billion cubic feet from a year ago, and 512 billion below the five-year average. Meanwhile, oil prices have been undermined by the continuing economic crisis in Venezuela, which has forced cuts to the beleaguered country’s oil production. Additionally, the US plans to reinstate sanctions against Iran, the third-biggest producer in the Organization for Petroleum Exporting Countries (OPEC), which also is likely to hit crude production and exports.

Over the last five days, light, sweet crude oil for July delivery was down 0.12% and closed at $65.74 per barrel. In other energy futures, gasoline fell during the week, down 0.09% and settled at $2.12 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 2.68% lower this week and was down in Friday’s session at $2.89 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 0.09% this week, from an increase of 0.45% in the previous week.

Gold ended the Friday session higher, settling at $1,302.70 to finish the week 0.40% higher, benefiting from its safe haven appeal, and equities floundered as tensions flared between long-time allies ahead of the G7 summit in Canada.  President Donald Trump sent out a series of provocative tweets aimed at France and Canada in retaliation to their support of excluding the US from a joint G7 statement. Earlier in the week, gold had seen some modest gains as the  dollar weakened versus the euro, amid hopes that Italy’s coalition government can get the nation’s economy into high gear. Meanwhile, copper was up at Friday’s session, settling at $3.30, and was 6.63% higher in the last five days. The surge in prices was sparked by concerns over the labor talks at BHP Billiton’s Escondida mine in Chile, which have remained unresolved, and consequently raised fears that mine output, which contributes to about 5% of global copper supply, could be affected.

Agriculture commodities ended the week mostly lower: sugar had a weekly decline of 2.16% and settled at a price of $0.12 per ton on Friday; coffee was at $1.23 per pound at Friday’s close, with a weekly drop of 4.44%; and cocoa fell 3.42% for the week and closed Friday’s at $2,393. Among grains, corn was down 3.52% in the week and settled at $3.78 per bushel in Friday’s session; and wheat was up 0.05% for the week and settled at $5.20 per bushel at the end of Friday’s session. Soybeans had a weekly decline of 5.37%, closing at $9.69 per bushel on Friday. This weekly decline is the biggest since August 2017 amid expectations for a bumper crop in North America, following forecasts for beneficial rains in the US Midwest.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) fell 1.84% for the week, compared with an increase of 3.13% 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: OPEC Output Curbs, Rising US Production Weigh on Oil; Gold Slumps on Strong Jobs Data; Geopolitical Concerns and Trade War Fears Wane

(MT Newswires) – -Crude ended in negative territory for the week — suffering its lowest finish since April, following reports of rising US production as well as the possibility that the Organization of the Petroleum Exporting Countries and its allies would taper production curbs, if not outright boost crude output to help offset output losses from Iran and Venezuela. On Wednesday, the Energy Information Administration reported that US crude supplies fell by 3.620 million barrels for the week ended May 25, confounding expectations for a draw of just 400,000 barrels. But, monthly data on Thursday showed that US crude production increased 2.1% to 10.474 million barrels a day in March, up from February. It was also up 14.6% from March 2017. Meanwhile, officials from Saudi Arabia had expressed their intent to step up production gradually while maintaining its quota agreement with OPEC. Earlier in the week, the organization has said it would maintain its output cuts. Finally, Baker Hughes’ (BHGE) rig count report showed the number of oil rigs operating in the US jumped by 2 to 861 — the third consecutive week of gains and near the highest level since mid March 2015.

Over the last five days, light, sweet crude oil for July delivery was down 2.71% and closed at $65.81 per barrel. In other energy futures, gasoline fell during the week, down 1.13% and settled at $2.14 per gallon at the close of Friday’s session. Meanwhile, natural gas edged 0.37% higher this week and was up in Friday’s session at $2.96 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) rose 0.45% this week, from a decline of 0.69% in the previous week.

Gold ended the Friday session lower, settling at $1,299.30; and finished the week 0.70% lower. In the first half of the week the yellow metal benefitted from its safe haven appeal, as concerns over developments in Italian politics, as well as more trade war fears, drove most traders away from equities. But equities took a higher turn on Friday, and gold slumped after Italian politicians agreed on a coalition government, averting the prospect of a snap election and ending the uncertainty in the eurozone’s third-largest economy. Back home, strong US jobs data also helped buoy stocks, with nonfarm payrolls rising ahead of expectations with a gain of 223,000 in May versus estimates for a 190,000 rise. The unemployment rate firmed at 3.8% versus estimates for 3.9% and also 3.9% for the previous month. Meanwhile, aluminum and copper made modest gains following President Donald Trump’s announcement of new US tariffs on  imports of steel and aluminum from three of its biggest trade partners — Canada, Mexico and the European Union. The European Union said it will open a case with the World Trade Organization questioning the tariffs, while Canadian Prime Minister Justin Trudeau said Canada will also file a challenge to the levies with the WTO, calling the tariffs “illegal and counterproductive.” Copper rose 0.41% for the week and closed Friday’s session at $3.09 per pound; aluminum had a weekly rise of 1.37% and settled at $2,292 per ton.

Agriculture commodities ended the week mostly mixed, with grains trading mostly lower: corn was down 3.87% in the week and settled at $3.92 per bushel in Friday’s session; soybeans had a weekly decline of 1.70%, closing at $10.21 per bushel on Friday; and wheat was down 3.95% for the week and settled at $5.23 per bushel at the end of Friday’s session. Meanwhile, sugar had a weekly gain of 0.32% and settled at a price of $0.12 per ton on Friday; coffee was at $1.23 per pound at Friday’s close, with a weekly gain of 1.79%; and cocoa fell 4.03% for the week and closed Friday’s at $2,458. Cocoa prices slumped this week after the International Cocoa Organization lowered its global production estimates and boosted its demand forecasts for the 2017-2018 season, according to a report on MarketWatch. The organization said in its quarterly report that in 2017-18 cocoa supply will surpass demand by just 10,000 metric tons, a decline from the 105,000-ton surplus it forecast at the end of February. The ICC also said it projects production to be  4.587 million tons, a 3.3% annual drop.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 3.13% for the week, compared with an increase of 1.80% 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: Uncertainty Over US-North Korea Summit Key Driver in Oil, Gold Commodities; OPEC Output Curbs Weigh on Energy Sector

(MT Newswires) – – Geopolitical worries were central to much of the movement in commodities and funds associated with them, tracking global equities this week. Foremost of these concerns was the uncertainty over whether a US-North Korea summit would push through or not. On Thursday, US President Donald Trump withdrew from what would have been a historic summit with North Korea’s Kim Jong Un. North Korea’s response to the developments was somewhat measured, with a senior official from Pyongyang saying the North Korean leader was still willing to meet with Trump. For his part, Trump praised North Korea’s response to the cancellation of the much-awaited summit as “warm and productive” — hinting yet again, the meeting could happen after all, according to a report in the UK’s The Telegraph.

Energy commodities were on a downward trend for most the week, trading firmly in negative territory amid developments surrounding the US-North Korea summit. Moreover, speculation that OPEC-led output curbs could be relaxed at a June meeting further weighed on the energy sector, with reports that Saudi Arabia and Russia plan to ease production limits to offset shortfalls from Iran and Venezuela. On Wednesday, the Energy Information Administration reported a massive increase in crude oil stockpiles, with US oil inventories jumping 5.8 million barrels, versus expectations of a 2 million barrel drawdown. Gasoline stockpiles also rose according to the EIA, hinting that US drivers are resisting $3/gallon at the pump. The American Petroleum Institute had previously reported that US crude supplies fell by 1.3 million barrels for the week ended May 1. The API data, however, showed an unexpected rise of 980,000 barrels in gasoline stockpiles. Crude oil slumped further on Thursday when the Trump administration launched an investigation into whether imports of cars, trucks and auto parts threatened US national security. The final bit of data for the energy sector is Baker Hughes’ (BHGE) rig count report, which showed the number of oil rigs operating in the US jumped by 15 to 859, its highest level since March 13, 2015. The combined oil and gas rig count in the US rose by 13 to 1059 as gas rigs fell by two to 198.

Over the last five days, light, sweet crude oil for July delivery was down 5.50% and closed at $67.880 per barrel. In other energy futures, gasoline fell during the week, down 2% and settled at $2.17 per gallon at the close of Friday’s session. Meanwhile, natural gas edged 3.30% higher 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 0.69% this week, from an increase of 1.34% in the previous week.

Gold ended the Friday session lower, settling at $1,309.00, but held on to modest gains to finish the week 0.62% higher. Uncertainty over the US-North Korean summit had previously boosted the yellow metal higher as traders were driven to safe havens. Downbeat economic data throughout the week also helped mild gains, including a bigger-than-expected decrease in new orders for US manufactured durable goods in the month of April; a decline in durable goods orders in April; and a modest deterioration in US consumer sentiment for the month of May. Meanwhile, copper also eked out gains, ending the week up 0.47%; earlier declines were driven by the uncertainty surrounding the meeting between the US and North Korea, as well as a higher greenback. The red metal recovered somewhat by Friday, settling at $3.08 at the end of the regular session.

Agriculture commodities ended the week mostly in the positive territory, led by grains: corn was up 1.10% in the week and settled at $4.06 per bushel in Friday’s session; soybeans had a weekly rise of 4.43%, closing at $10.42 per bushel on Friday; and wheat was up 5.07% for the week and settled at $5.43 per bushel at the end of Friday’s session. The gains in soybeans followed news that China had resumed importing soybeans from the US. According to a report on Reuters, a Chinese importer had purchased one cargo of US soybeans for August shipment — the first sale of US soybeans to China since the two countries had engaged in a so-called trade war in past few weeks. Meanwhile, wheat prices remained near 10-month highs on concerns over dry weather in key global producing regions.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 1.80% for the week, compared with a decline of 1.02% 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.