I had this yesterday from Goldman's: Goldman Sachs cuts commodities index forecast outlook
Here is a little more now:
- Commodities will reverse a rally that started in March as a stronger U.S. dollar, cheaper oil and cooling China again pressure raw materials, especially copper
- Copper will lose at least 16 percent over the coming 12 months on China's weakening demand growth and slowdown in construction completions
- Oil in New York will fall to $45 a barrel by October while the dollar continues its rise, pushing commodities prices lower as production costs slide
- "We see downside pressures on commodity prices re-emerging"
- "The recent rise in commodity prices is clearly at odds with our lower-for-longer bearish view across the complex"
- More on copper ... "We believe that current prices represent a very strong selling opportunity, for producers and investors alike," Goldman Sachs wrote in the report. "Despite the recent partial retracement in prices, the structural bear copper narrative remains intact."
