Mubasher: A recent report by JPMorgan Chase is expecting commodity returns to face more poor performance in 2018, as reported by Bloomberg.

Analysts noted that in order for traders to make money that will need to pick assets, such as agriculture, and play short-term trends to take advantage of price swings, rather than buying and holding a broad basket of commodities.

The JPMorgan Chase’s outlook for 2018 included the following notes:

Oil markets are expected to stay balanced in 2018 due to an extended production cut agreement.

Brent crude will trade in the high $50 per barrel range.

As for metals, the report recommends going long on aluminium.

Meanwhile, copper and nickel supply will increase next year, leading to lower prices.

Copper will average $5,700 a metric down in the fourth quarter of 2018, compared with a current price of $6,900.

Precious metals will be stable through mid-year and then move higher because of worries about a slowdown in economic growth. Gold will average $1,350 PER ounce in the fourth quarter of the year.

As for crops, the report indicated that agriculture could do well next year, after a negative performance in 2017, recommending investors to go long on Kansas wheat and sugar.

Cotton and corn markets are expected to tighten due to a strong consumption and Chinese imports for the first, and production problems related to La Nina for the later.