Goldman Sees Upside in Soft Commodities
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Reports out of Goldman Sachs suggest there could be upside in soft commodities ETFs like DB Agriculture Fund (NYSE: DBA).
In a report on Tuesday, they said new crop soybean prices need to rise to $14.30 a bushel to curtail China's import demand because supplies will be limited over the next six months.
The July corn futures also "need to rally", says Damien Courvalin, an analyst at the bank in New York. His 12-month corn forecast is $5.25 a bushel.
Additionally, cotton prices will rise, as the U.S. Department of Agriculture will probably lower its U.S. acreage forecast for the fiber on June 29, according to the report. Courvalin’s three-month cotton forecast is 80 cents a pound.
In a report on Tuesday, they said new crop soybean prices need to rise to $14.30 a bushel to curtail China's import demand because supplies will be limited over the next six months.
The July corn futures also "need to rally", says Damien Courvalin, an analyst at the bank in New York. His 12-month corn forecast is $5.25 a bushel.
Additionally, cotton prices will rise, as the U.S. Department of Agriculture will probably lower its U.S. acreage forecast for the fiber on June 29, according to the report. Courvalin’s three-month cotton forecast is 80 cents a pound.
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