Increases in forest product and energy prices pushed the BMO Financial Group Commodity Price index to a record high in April.

According to the BMO Economics Department, the index rose 3% in April to 156.8, surpassing the previous high of 154.8 reached in December 2000. Commodity prices are now 26% higher than a year ago when the Index stood at 124.4.

“Although we have witnessed spectacular price gains over the past year in all commodity groups, we consider the pace of growth to be unsustainable and expect that downward pressure on wood product prices and energy prices should soon cool the index,” said Earl Sweet, assistant chief economist, BMO Financial Group, in a news release.

In April, the Oil and Gas Index rose 1.9% from its already elevated March level to 237.4. Crude oil prices rose 0.8% in April to a monthly average of US$36.87 and surged even higher in early May to US$40. Oil prices have remained high despite strong and growing global production of the commodity and a healthy recovery in inventories.

Natural Gas prices continued to climb in April, a time when reduced demand for space heating usually takes the edge off the market.

The Metals and Minerals Index slipped by just over 1.0% in April to 140.2. Most commodities in the index retreated amid concerns about higher interest rates in the United States and the possibility of slowing demand growth in China.

The Forest Products Index surged 7.1% in April to 127.0, elevated by price increases in all its major components. This is the fourth-straight monthly rise for the sub-index, which now sits at its highest level since early 1996.

Agricultural prices slipped slightly by 0.5% in April, to 107.8. Soybeans and canola lost ground amid fears that demand will shrink as the Chinese government attempts to dampen the pace of economic growth.