(November 25 – 10:00 ET) –
Strong rises in crude oil and
forestry prices drove the TD
Commodity Price Index up 3.1% in
November in U.S. dollar terms.
Prices are up about 20% from a
year-ago, says Teresa Courchene,
director of economic research at
TD Bank Financial Group.
They’re only 5% below their level
before the onset of the Asian
crisis in mid-1997 in U.S. dollar
terms. A weak Canadian dollar has
allowed prices to regain pre-crisis
levels.
TD expects prices will continue
to increase in line, next year,
with strengthening global demand.
That will push the Canadian dollar
higher too, perhaps reaching 72¢
US by late 2000.
During the month, lumber prices
rose 13% on news of planned
shutdowns by several producers in
North America during the holiday
season. Tight supply kept pulp and
newsprint prices rising too.
Crude oil prices increased to an
average of US$24.70 per barrel in
November, largely on speculation
that OPEC’s output curbs could be
extended beyond March 2000.
Nickel prices have been strong,
supported by the ongoing strike at
Inco’s Manitoba operations, and
production cutbacks elsewhere.
Gold and natural gas prices both
slipped. While most agricultural
prices remained depressed.
-IE Staff
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