Canada commodity prices fall 2.3% in Nov from Oct – bank

20 December 2012 15:23  [Source: ICIS news]

TORONTO (ICIS)--Canadian commodity prices fell 2.3% in November from October because of concerns over the global economic outlook and the fallout from the US federal budget deadlock, a bank said on Thursday.

In the first 11 months of 2012, Canadian commodity prices were down 8.4% year on year, Toronto-based Scotiabank said, citing its index of Canadian commodity prices.

We are experiencing another bout of concern over the outlook for global growth and the potential fallout from the US fiscal cliff in early 2013, dampening oil and grain prices," said Patricia Mohr, the bank’s commodity markets specialist. 

These negatives are only partially offset by news that China’s economy is revving up again, Mohr added.

Mohr also said that the discounts at which heavy Canadian crude oil trades vis-a-vis West Texas Intermediate and Brent widened in November. The discounts are mainly the result of inadequate export pipeline capacity.

The cost to the Canadian economy of these wide oil price discounts is enormous, Mohr said. She estimated that in 2012 alone the discounts cost Canada about $26.7bn (€20bn).

($1 = €0.75)

By: Stefan Baumgarten
+1 713 525 2653

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