Key takeaways

 Commodities are on pace to deliver the strongest year of returns since the   early 2000s. A constructive economic outlook, depleted inventory levels and  supply still struggling to respond to resurgent demand point to continued  strong returns in commodities.

 As in 2021, we are most constructive energy and agriculture but forecast precious metals prices will likely come under increasing downwards pressure. 

 This somewhat drags on the upside potential for the more evenly weighted  BCOM ER Index, though we still see it moving higher after its recent  setback and ending 2022 6% above yesterday’s close.

 Bullish forecasts for energy feed more directly into the heavily oil-weighted GSCI and we project the S&P GSCI ER Index will end 2022 16% higher  than yesterday’s level.