26 April 2011 19:57 [Source: ICIS news]
TORONTO (ICIS)--Prices of Canadian commodity exports rose 1.3% in March from February and were up 50.9% from a low in April 2009, mainly driven by higher prices for oil, fertilizers, metals and other resources, a bank said on Tuesday.
Toronto-based Scotiabank said Canadian commodity export prices would continue to rise - although at a slower pace - despite concerns about
Patricia Mohr, the bank’s executive vice president for economics, said March's increase, the ninth in a row, was mainly due to higher oil prices, which have surged since February amid the geopolitical turmoil in the
Potash prices continued to climb on the back of high grain and oil seeds prices, she added.
Even Canadian pulp prices saw a “surprising increase” in past weeks as a result of demand from
Mohr said some prices have lost momentum more recently because of concerns over
Market participants are also concerned that high world oil prices could dent consumer spending in both emerging and mature G7 economies, Mohr said.
In addition, commodity prices saw some pressure in April because of the sovereign debt risks in some eurozone economies, as well as Standard & Poor’s issuing a negative warning on the triple-A credit rating of the US.
However, despite these downsides, the cycle has not yet peaked, although gains would likely be “more limited,” Mohr said.
“It is likely premature to call a cyclical peak in global commodity prices, and prices have rallied back in recent days alongside an exceptionally weak US dollar and strong
Read Paul Hodges’ Chemicals and the Economy Blog
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections