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: | | | |
| 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 
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