MORGAN STANLEY: This Is What The The World’s 14 Most Important Commodities Will Do
With the growing global population increasingly demanding goods, many financial advisors have advised clients to invest in commodities. Morgan Stanley’s commodities team led by Hussein Allidina favors soybeans, corn, and wheat as poor weather conditions slam supplies.
They also like precious metals, particularly gold and silver, as loose monetary policy sends investors seeking something with more stable value. In fact, Morgan Stanley recently called the Federal Reserve’s latest action a game changer for the yellow metal.
What follows are Morgan Stanley’s opinions and price targets for 14 major commodities.
Brent oil continues to be affected by geopolitical tensions
Projected 2012 average: $110 /bbl
2013 price: $115 /bbl
Source: Morgan Stanley
Natural gas supplies will tighten by the end of the year, eventually sending prices higher
Projected 2012 average: $2.74 /mmBtu
2013 price: $4.00 /mmBtu
Aluminum prices will stay at low levels due to oversupply and too much production
Copper prices will lead the industrial metals due to supply concerns
Nickel supplies remain high, but price risk is to the upside
Zinc will continue to suffer from oversupply for several more quarters
Gold is the best commodity to own right now
Silver prices will be supported by the same forces fueling gold’s rally
Projected 2012 average: $32 /oz
2013 price: $35 /oz