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Tuesday December 19, 2006
Commodities to watch for in 2007 = The rising stars from 2006
Posted by fin24.co.za


    Analysts think uranium, corn and oranges will likely take the spotlight in 2007. Here are some predictions:    
fin24.co.za


         


  Corn futures have climbed over 40% from the end of last year driven by demand for ethanol - is ethanol emerging as a significant fuel?     
  2007 may be Florida's smallest orange crop in 15 years The 2005 hurricanes and ongoing crop diseases in Florida have kept the orange crops very small - just one big shortage from driving these prices a lot higher.     
  Oil to stay high - The requirements of India and China for oil will continue to increase at double-digit percentages - that means prices will stay above $45 and any type of geopolitical event could take them to $85, $90     
  Natural gas around $6 range through 2007 because of slow growth in additional supplies. The opening of several new liquefied natural-gas terminals in 2008 will help drive prices for the fuel lower after 2008     
  $775 gold seen in 2007? The 2006 gold market rally got ahead of itself - in the first half of next year, the market will probably move back to the prior highs we saw in early 2006 and as high as $800 - $850 an ounce     
  Silver is more attractive than gold right now ... setting itself up for a move to the $18 to $20-an-ounce mark by early next year and potentially move up to $25     
  Copper - Next year, look for a price below $2.50. Look out for supply restrictions, not demand - that's the biggest factor right now. Both copper consumption and imports fell in China     
  Platinum's outlook isn't much rosier than copper's as users would look to switch to palladium     
  You want to bet on one commodity in 2007? Make it uranium - the basic material for nuclear technology, and supplies fall far short of meeting global demand as the world seeks alternatives to oil - There was a 42 million-pound shortfall this year -     

   Full article at fin24.co.za

2007 may well be the year when mainstream investors rediscover hard assets. Precious metals, especially gold, will make headlines that we have not seen for a generation.

All told, commodities are in for an interesting year ahead

    


    Speculative Bubble
2007-01-09
17:25:27
       
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