Commodity markets traded lower in early trade Wednesday following a new note from Credit Suisse highlighting that they expect weakness in commodity markets over the next few years.
The analysts at Credit Suisse slashed their price targets for nearly every commodity for 2013 and 2014 on both lower demand forecasts but more so due to higher supply forecasts.
"It is unlikely, therefore, that commodity demand will be strong enough anytime soon to pull the entire complex higher, although neither should it be weak enough to see a generalized move lower. Rather, we expect individual supply factors to be the key driver in 2013, with many of the remaining 'outperformers' (gold, iron ore, copper and, with a lag, oil) likely to begin to come back to earth."
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