Aug 22, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Commodity Price Skeptics

December 17, 2009
By: Sara Schafer, Farm Journal Media Business and Crops Editor
 
 

Linda H. Smith, Top Producer Executive Editor
 
Even as investors pour money into commodities as an inflation hedge, the economists at IHS Global are not convinced the gamble will pay off, at least in the short term. "Early this year, it was probably justified by market fundamentals,” says Nariman Behravesh, chief economist. "Now it is difficult to justify—demand is weak and inventories are high.”
 
He expects prices of crude oil, natural gas and industrial materials to soften. "

Specifically, oil prices are expected to fall from current levels in the $75-$80/barrel range to around $65/barrel by spring, before gradually moving above $70 by the end of 2010, as the economy pick ups steam.”

 
Should investors lose interest when that occurs, the negative impact could trickle down to ag commodities as well.

 

 

 
You can e-mail Linda Smith at lsmith@farmjournal.com.

See Comments

RELATED TOPICS: News, MoneyWise

 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

 
 
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions