Hello Abbeydale
Some news of interest on Commodity Price trends:
SCOTIABANK COMMODITY PRICE INDEX EASES IN MARCH
TORONTO, April 30 /CNW/ - The Scotiabank Commodity Price Index, which
measures price trends in Canada's major exports, fell by 0.6 per cent in March
after picking up in February. Lower oil and forest product prices more than
offset a slight improvement in metal and agricultural prices.
''Despite this month's decline, commodity prices are bottoming,'' stated
Patricia Mohr, Vice-President and commodities specialist for Scotiabank.
''Prices will be bolstered later in the year by a 12 trillion yen (US$ 92.3
billion) Japanese stimulative package including tax incentives for housing
purchases and public works.''
The Forest Product Index weakened in March with lower lumber and pulp
prices and largely unchanged newsprint prices. Western Spruce-Pine-Fir 2x4
lumber prices eased to US$288 per mfbm, but have edged up to US$297 in late
April alongside buying for the spring building season.
''Northern bleached softwood kraft pulp prices dipped in March, but are
now recovering. A major Canadian pulp producer intends to boost prices
worldwide to US$600 in June -- a level which would generate moderate profit
margins for many Canadian producers,'' stated Mohr.
Papermakers in the United States, Europe and Asia are rebuilding pulp
inventories, recognizing that prices have bottomed. However, pulp demand could
slow again once inventories are replenished.
''The Metal and Mineral Index inched up in March and probably rose
further in April,'' observed Mohr. ''Zinc prices have climbed to US$0.49 per
pound, buoyed by good demand in the United States and Europe and a balanced
global market.''
London gold prices have rallied from US$269 per ounce in March to
US$310.70 in late April as hedge funds anticipate an end to central bank
selling and a larger-than-expected reserve role for gold in the new European
Central Bank.
West Texas Intermediate crude oil fell to a four-year low of US$14.94 per
barrel in March and remains a weak US$15.26 in late April. The market was
disappointed with the final agreement on oil production cutbacks by OPEC and
non-OPEC countries, believing that the cuts will be insufficient to tighten
market conditions in the near term. In contrast, natural gas prices delivered
to pipelines in Texas and Louisiana remain robust at US$2.39 per mmbtu in late
April, well above year-ago levels.
''Expectations of a return to more normal weather conditions after El
Nino -- a hotter summer and colder winter -- have been a factor boosting
prices,'' Mohr said. ''The Agricultural Index strengthened in March. Wheat
prices should be boosted in the coming crop year by a ten per cent drop in US
plantings.''
Regards |
