Goldman also singled out soybean contracts, which have “value at current levels.”
The Teucrium Soybean Fund (NYSEArca: SOYB) jumped 4.2% Friday, with CBOT corn futures up 2.4% to $3.6075 per bushel, according to Bloomberg. Nevertheless, SOYB is still down about 11% since June.
“We believe all of these concerns have been oversold. Even soybeans, the most exposed of all assets to trade wars, is now a buy,” Goldman analysts said.
The bank is broadly bullish on commodities as its outlook is bolstered by strong global growth and depleting inventories in energy and metal markets that would likely result in higher prices. Goldman Sachs maintained its “Overweight” assessment of the commodities space, projecting a 12-month expected return of 10% for the S&P Goldman Sachs Commodity Index.
For more information on the commodities market, visit our commodity ETFs category.