- Grains and and softs to outperform on the back of lower inventories and supply issues due to weather and credit availability. Furthermore, demand less likely to be dampened as EM consumption basket is food heavy.
- Higher levels of market volatility. Trader's market. US dollar will be key.
- Overall "U" shape for commodities in 2009. Further downside, but potential for higher prices at the end of the year.
Friday, 2 January 2009
Quick Thoughts On Commodities for 2009:
Given the sharp losses in commodity markets, I wouldnt be surprised to see some commodity markets bouncing around a lot. However, the economic backdrop remains challenging, and this will weigh on markets. A few thoughts:
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