Oil: $105 High , $65 Low - I refrained from being too aggressive as it is very possible that another financial crisis will strike. It might be an isolated incident (happens in a few smaller eastern European countries or a European debt default). Even a double dip could send oil below $70 again.
Wheat: Based on the numbers from the CRB yearbook, Wheat will likely break out to between $9-$10/bushel. This is due to the fact I think the production-consumption numbers will grow closer together, unlike 2009 ( the most current CRB data), where production increased more than consumption. Throw the Russian debacle in there as I think $10/bushel is very reasonable.
Silver: I still expect silver to end the year between $26-$28/ounce. But I think 2011 will be even more exciting as I think the short squeeze will gain momentum. Though this may sound absurd I'm looking for $40.ounce +/-5% or ($38-$42). This will not be due completely to a short squeeze but also a hedge as future inflation expectations pick up.
Gold: With a rather quiet year in 2010, I think economic turmoil in 2011 will dwarf what we saw this year, sending this safe-haven investment to record highs of $1725/ounce. This also is not just for one reason but because gold is considered the ultimate inflation hedge.
Natural Gas: Though very volatile at times, this should be calmed by the supply glut we currently have. That being said, I still expect it to rise to between $4.75-$5mmbtu. Despite the supply glut, the oil to natural gas ration is more than twice the average. I obviously expect this to contract somewhat, but not revert back to historical norms.
Rice: With the Chinese having to import rice coupled with the supply-demand fundamentals I expect big things out of rice. $20-$22/barrel is my current target but subject to a revision upwards depending on how it finished the year. Additionally, it's depressed on a historical basis while the fundamentals don't point towards these type of prices.
Corn: I don't expect much out of corn with the exception of whether oil can reach $120-$130/barrel as it would be a cheaper substitute. I do, however expect some price appreciation to $6.75, give or take.
Sugar: I definitely don't see sugar having a similar year to 2010 but I expect it to be between $35-37. This is strictly based on the production-consumption dynamics. This, like most of commodities, is dependent on Asia. If they can avoid falling back into a double dip this target should stick, otherwise I would think it would end the year flat.
Copper: Copper is my one short as soon as it breaks $3.90/LB. As this commodity is most tied to the economy, I expect it to end below this year's high at $3.50 or under. Again, this is due to an expectation of a double dip recession.
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