Senior Analyst Christin Kyrme Tuxen present the outlook for commodities. View the video below and read more in Commodities Monthly.
We remain bullish on commodities going into 2011, partly on tighter market balances and partly on a weaker dollar. In oil, OECD demand looks healthier and, provided OPEC stays put, USD80 should provide a new floor for prices. Metals demand has remained strong and may face a shift higher of physically backed ETFs are launched. Soybeans and corn have rallied on a bullish USDA outlook; market balances are tightening across grains. The risk of “agflation” is rising but still poses a distant scenario in our view. On the whole, consumers should await price setbacks before locking in 2011 expenses in our view.
Commodities Monthly: Market balances tightening