"Goldman lifts commodity hopes - but not for ags"

From Agrimoney:

Goldman Sachs kept a downbeat view on prospects for agricultural commodity prices even as it raised expectations for raw material values as a whole, but acknowledged that it may prove too gloomy on softs and livestock.

The investment bank raised to "neutral" from "underweight" its rating on commodities, saying that prospects for further price falls had been diminished by a recent erosion in values and the prospect of strong economic growth in countries such as the US.

"With commodities down 1% in the past month, and given our economists' forecast for sequential acceleration in growth, we are raising our 12-month allocation for commodities," Goldman said, forecasting a neutral performance over the next three months.

Over the next year, prices, as measured by the S&P GSCI Enhanced Commodity Index will fall by 2.2%, less than the 4.0% drop forecast a month ago.

'Stocks remain elevated'

However, while lifting expectations for prices of industrial metals - which it sees rising 0.5% over the next year compared with a previous forecast of a 4.0% drop –Goldman stuck with forecasts for 10.0% drop in crop price....MORE