Goldman Sachs Sees Structural Bull Market for Commodities

Goldman Sachs forecasts a structural bull market in commodities, expecting a 28% return over the next year. This is driven by shrinking inventories, supply deficits, and macroeconomic factors like a weaker dollar and global monetary policies. Supply shortages arise from various reasons, including structural changes and unrelated factors. The discussion also covers inflation hedges and bond market dynamics, with a focus on specific commodities like soy and natural gas, which face significant deficits. Macro tailwinds, such as rising inflation risks, are expected to offset potential demand shocks from COVID-19.

What macroeconomic factors are expected to offset demand shocks in the commodities market?

What commodities are specifically mentioned as having a huge deficit for next year?