From FT Alphaville:
The latest ‘Commodity Watch’ note from Goldman Sachs continues to paint a bullish picture for most of the commodities complex in 2011 and 2012....MORE
The usual Goldman arguments about how global growth, fueled by Asia, will support rising commodities demand, are all there. As the analysts explain in the summary:
We expect this demand growth will be sufficient to tighten key commodity markets over the next six to twelve months, particularly for those markets where supply constraints will become binding even on slower economic growth. We reiterate our long trading recommendations for Brent crude oil, UK natural gas, copper, zinc and soybeans.But it’s the last tip — soybeans — which is possibly the most interesting.
Their argument goes as follows:
Agriculture: We still expect soybeans to outperform
By-the-bye, one of the giants in Jack the Giant Killer is named Blunderbore.