* Sees uneven performance through 2012
* Sees rangebound ag commodity prices
April 17 (Reuters) – Citigroup on Tuesday raised 2012
price forecasts for most precious metals, base metals and
grains.
“Commodity markets are reflecting increased differentiation
as a group, with most of the asset class range bound and driven
by macroeconomic factors and relatively balanced fundamentals,”
the bank said in a note to clients.
Uneven performance is expected to continue through 2012, it
added.
The bank raised its 2012 gold, platinum and palladium price
forecasts, but cut 2013 outlook for gold.
Gold price action could be volatile as markets are caught
between changing inflation and monetary policy expectations,
political turnover and sudden demand for liquidity, Citi
analysts said in the second quarter commodity update note.
Citi raised most of its 2012 price forecasts for base metals
like aluminum, copper, zinc, lead and tin.
“In the near term, individual industrial commodities are
likely to be driven by supply shocks and cost push rather than a
significant demand shock,” Citi said.
The bank raised its 2012 price forecasts for CBOT corn,
wheat, soybean, sugar and NYBOT-ICE Cocoa.
“On the aggregate, we forecast range bound agriculture
prices with a slightly bullish to neutral bias for the sector on
a fundamental basis, expecting corn and oilseeds to set the tone
for the market,” the bank said.
Soft commodity markets were poised to be less eventful this
year versus last with fewer risks to supply and the absence of
policy price catalysts, it added.
