(February 14 – 15:05 ET) – The Commodity Price Index rose in January for the fifth consecutive month, and for the tenth time in the past year, according to Bank of Montreal’s Economics Department.
The bank’s Monthly Commodity Price Report for January states that the index rose to a level of 117.6, where the index from 1993 equals 100. That’s a gain of 2.3 per cent over December.
“The index has risen almost 23 per cent since January 1999, representing the sharpest annual gain since the late 1970s,” says Earl Sweet, Assistant Chief Economist, Bank of Montreal. The recovery over the past twelve months reflected strengthening world demand for commodities and supply curtailments by crude oil producers and several
metal producers.
Within the specific industries, the Metals and Minerals Index continued its upward trend, propelled mainly by gains in aluminum, copper and nickel prices. The Oil and Gas Index also rose, reflecting higher prices for crude oil as major exporting nations maintained stringent supply restraints. “Natural gas prices remained essentially flat on a monthly average basis, although they increased sharply in the latter half of January as cold weather in major consuming regions raised demand and increased the draw on inventories,” says Sweet.
The Forest Products Index reached its third-highest level of the past eighteen months, as a result of an increase in pulp prices. The Agricultural Index had a meagre gain, although this offered virtually no relief from the steep decline experienced in the past two years. “Heavy excess supplies of major grains and oilseeds in global markets have depressed prices,” says Sweet.
The complete report is available on the economics page of BMO website.
-IE Staff