Canada August commodity prices fall by 3.3% from July - bank

30 September 2011 15:51  [Source: ICIS news]

TORONTO (ICIS)--Canadian commodity prices fell by 3.3% in August from July as investors rushed to cash and US Treasury securities amid economic uncertainties in the eurozone and the US, a bank said on Friday.

Toronto-based Scotiabank, which cited its monthly commodity price index, said that in addition to the worries in Europe and the US, China’s economy – “of vital importance to global commodity markets” – also appears to be slowing.

Patricia Mohr, vice president of economics at Scotiabank, said financial market concerns triggered a flight from riskier assets such as equities and commodities to cash and the liquidity of US Treasury bonds.

Expectations that US growth may remain “exceptionally slow”, with minimal inflation, are likely to have increased the attractiveness of US Treasury bonds, despite their “very low yields”, Mohr said.

Mohr also noted that spot potash prices for overseas sales, FOB (free on board) Vancouver, were at an average of $490/tonne (€363/tonne) in August, up 43% year on year.

Fertilizer applications should continue to be “solid” in 2012 as farmers benefit from higher feed grain and oilseed prices and generally low stocks, she added.

($1 = €0.74)

For more on fertilizers, visit ICIS fertilizers
Read Paul Hodges’ Chemicals and the Economy Blog

By: Stefan Baumgarten
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