Crop Price Decline Top Commodity Opportunity at Goldman Sachs
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The downside potential for agriculture prices is the biggest trading opportunity across commodity markets for analysts at Goldman Sachs Group Inc. as production recovers, according a report from the bank.
The bank recommends initiating a short position for new-crop corn and soybeans, analysts Damien Courvalin and Jeffrey Currie wrote in a report dated yesterday. Goldman lowered its forecast to $4.75 a bushel for corn and to $11 a bushel for soybeans in three, six and 12 months. That compares with a previous prediction of $5.25 and $12.50 for six and 12 months.