Canada commodity prices fall 0.4% in July from June

30 August 2012 17:04  [Source: ICIS news]

TORONTO (ICIS)--Canadian commodity prices declined 0.4% in July from June, falling for the eighth month in a row, a bank said on Thursday.

However, Toronto-based Scotiabank said that the pace of July’s decline in commodity prices slowed, compared with the 3.7% month-to-month drop in June.

The bank said that its monthly Canadian commodity price index was now 19.5% below a peak in April 2011 – just prior to the advent of concerns over excessive eurozone sovereign debt.

"In recent weeks, riskier assets such as oil and equities have been buoyed by expectations of further [US] Federal Reserve Board monetary policy easing to boost a slow US economy or a major bond purchase programme by the European Central Bank in support of the sovereign debt market," said Patricia Mohr, Scotiabank’s commodity market specialist.

Moore said that heavy crude oil from western Canada continued to trade at a high discount to West Texas Intermediate (WTI) crude in July.

"In my view, narrowing the gap between [western Canadian] heavy crude oil and WTI oil to levels more in line with crude quality differentials will require building additional pipeline-rail access from western Canada to the British Columbia coast, " Mohr added.

By: Stefan Baumgarten
+1 713 525 2653

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