Commodities: Goldman Sachs expects corn futures to drop to $3 a bushel in three months
Commodities continued to trade on their back-foot on Tuesday as a result of US dollar strength and in the run-up to Thursday's ECB policy meeting and Friday's all-important US non-farm payrolls report.
West Texas crude futures for November delivery slid sharply on Tuesday, losing $3.18 to trade at $91.37 per barrel by the end of trading on NYMEX.
Gold futures for December out on COMEX slipped by $4.1 to end the day at $1,211.6 per ounce.
Three-month copper futures lost 1.11% to $6,667 per metric tonne on the LME. A weaker than expected reading on China's manufacturing sector weighed on the industrial metal, as did worse than forecast numbers out in multiple jurisdictions, including Japan and the US.
The corn contract for December was down by 0.7% to $3.185 a bushel on the Chicago Board of Trade (CBoT), plumbing its lowest level for almost five years.
Losses may have further to run Goldman Sachs told clients in a note released yesterday. The broker estimates that the price of corn may fall to as low as $3 a bushel over the next three and six months. Wheat futures for delivery in December declined 0.9% to $4.735 a bushel.