Global commodity markets to deliver below-average returns in 2007

12/11/06 - J.P. Morgan Securities

LONDON, December 11 (newratings.com) – Analysts at JP Morgan expect the commodity markets to deliver below-average returns in 2007 on the broad indices.

In a research note published this morning, the analysts mention that several of the trends in the commodity markets during 2006 are expected to continue into 2007, including reasonably supportive demand, continuing financial flows, negative roll returns and reasonably supportive demand globally. The analysts expect precious metals and agricultural commodities to deliver the highest returns in the commodities market in 2007. The precious metals segment is likely to be the prime beneficiary of the weakness in the US dollar going forward, JP Morgan adds.