VV:Commodity prices saw 'modest' decline in May: Scotiabank
OTTAWA — Prices for Canada's main export commodities were down in May but not as much as might have been expected given the volatility of markets that month, according to a monthly index.
The Bank of Nova Scotia said Tuesday its commodity price index fell a "modest" 2.6 per cent in May, while acknowledging that goods not subject to daily fluctuations on the open market proved more stable than exchange-traded materials.
"Over one-third of the commodities included in the Scotiabank commodity price index, such as coking coal and potash, are not traded on exchanges, insulating them to some extent from day-to-day jitters over economic and financial market developments such as a mild growth slowdown in China," said Patricia Mohr, commodity market specialist at Scotiabank.
The oil-and-gas sub-index was down 3.9 per cent. It was noted that the benchmark price for crude oil declined to an average of $101 U.S. a barrel in May from $110 in April, and has since dropped to around $90.
The metals-and-mining index was down 2.3 per cent as declines in base metals, uranium, silver and molybdenum more than offset gains in gold, potash and cobalt.
The agricultural index was up 0.3 per cent in May, helping to offset the effect of price declines in the other main components of the overall measure. After easing somewhat over the summer, Scotiabank expects strong gains in agricultural prices in the fall, led by items such as corn and wheat.
