Goldman Nails Its Big, Bearish Commodity Call

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Goldman Sachs analysts’ are calling time on their current long commodity play, and say now is the time to get out of their trades with oil, copper, soybeans, cotton, and platinum, according to the Financial Times.

The FT notes the trade has returned 25.3% since December, when Goldman first talked about it.

The fear, according to Goldman, is that prices are now rising so fast they may destroy demand.

The impact of the end of this trade has been broad today.

  • Oil down 2.17%
  • Copper down 1.89%
  • Platinum down 0.6%
  • Soybean oil down 2.60%
  • Soybean meal down 2.17%
  • Cotton down 3.35%

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All U.S. indices are down about 1%, but the play is definitely more pronounced in energy markets like oil.