Oil, Grains Will Top Commodity Gains in 2011, Barclays says – Bloomberg.com

Commodities Mar 23, 2011 No Comments

Crude oil and grains will be the top commodity performers this year as investors bet on supply disruptions, a Barclays Capital survey showed.

The Standard & Poor’s GSCI Spot Index of 24 raw materials jumped 20 percent last year, led by cotton, silver and arabica coffee. The gauge is up 14 percent this year, with cotton, oil and silver climbing the most. Food prices rose to a record last month, according to the United Nations.

Twenty-eight percent of more than 100 investors polled this month said oil will gain the most this year, followed by corn and wheat, Barclays Capital said. Gold, which rose 30 percent last year, may be “losing its shine” and was ranked the worst performer for 2011 after natural gas, the bank said.

“There is a strong case now for taking money out of gold,” Kevin Norrish, a managing director at Barclays, said in London yesterday. “The real risks are more bad weather and higher food prices. The real risks are further geopolitical issues and higher oil prices. That’s why crude oil and grains are on top of the list.”

via Oil, Grains Will Top Commodity Gains in 2011, Barclays Says (1) – Bloomberg.com.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.