SOURCE: Scotiabank

Scotiabank

November 28, 2013 07:30 ET

Scotiabank's Commodity Price Index Falls Further in October

TORONTO, ON--(Marketwired - November 28, 2013) - Scotiabank's Commodity Price Index fell by 3.8% month over month (m/m) in October -- the third consecutive monthly decline. While the All Items Index has levelled out so far this year, commodity prices have lost steam since May and are currently 7.4% below a year earlier.

"On the upside, metals and minerals are approaching a cyclical bottom and much of the unwinding of high grain and oilseed prices linked to this Fall's monster-sized North American crops is over," said Patricia Mohr, Scotiabank's Vice President of Economics and Commodity Market Specialist. "Commodity prices should steady as 2014 unfolds." 

Highlights in the report include:

  • Oil pricing dynamics begin to change across North America.
  • Railways are taking up the challenge of delivering Western Canada's crude to new markets across North America, including the US Gulf Coast and Atlantic Canada.
  • China's new leadership announced a new Reform Agenda, after the Third Plenum of the Central Committee on November 9-12 in Beijing -- potentially a watershed development for China and the global economy. China currently accounts for 45.8% of world demand for the four key base metals (copper, zinc, aluminium and nickel) -- the United States only 9.9%. 

Read the full Scotiabank Commodity Price Index at http://www.scotiabank.com/ca/en/0,,3112,00.html.

Scotiabank provides clients with in-depth research into the factors shaping the outlook for Canada and the global economy, including macroeconomic developments, currency and capital market trends, commodity and industry performance, as well as monetary, fiscal and public policy issues.

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