Livestock looks a better bet than crops, which will miss out on a rebound in commodity prices led by energy markets over the next year, Goldman Sachs has said.

The investment bank forecast that commodities overall would return 17.5% over the next 12 months, as the economic recovery evident in improving US manufacturing data and "robust" Chinese statistics feed through.

Oil prices would hit $94 a barrel, a rise of more than 25% on Tuesday's price, boosted by increasing demand at a time of sluggish production growth pushed the market into a deficit.

Similar factors would "lend substantial support" to copper.

'Weaker fundamentals'

However, price rises among agricultural commodities would remain "limited" Goldman Sachs said, forecasting livestock returns of 5.0% over the year, with crops showing a marginal decline.

"Current price levels are generally consistent with the fundamentals for the major crops."

The exception was corn, for which Goldman stuck by a forecast of $4.50 a bushel by next autumn, helped by increased demand for ethanol as oil prices rise.

Soybeans would be priced at $10 a bushel in a year's time, near their current price.

Cocoa and sugar, currently in vogue because of the squeeze on demand, were set for drops of 15-20%.

Hog recovery 

Livestock prices, meanwhile, would be supported by some increases in demand as economic recovery revives demand.

Consumption of pork has already begun recovering, a revival which, coupled with herd cuts by suppliers, should bring "moderate upside in prices and returns in coming months".