(October 27 – 12:20 ET) –
Scotiabank’s Commodity Price
Index advanced by 2.3% in
September. The All Items Index has
advanced by 11.9% over a year
earlier.
The year-over-year gain in the
Forest Products Index slowed to
4.3% in September because of the
recent decline in U.S. lumber
and oriented strandboard prices,
alongside a gradual tightening of
U.S. monetary policy and prospects
for slightly lower U.S. housing
starts next year.
However, strong print
advertising related to the new
millennium is lifting fourth
quarter prices for pulp,
newsprint, and printing &
writing papers.
The announced US$50 per ton
newsprint price increase in the
United States is going through in
October. Newsprint transaction
prices in the Eastern United States
averaged about US$475 per tonne in
September — a level just above
breakeven costs of US$460 in
Ontario and Quebec, but below
breakeven in the Southern U.S.
at US$479. With ample inventories,
this price increase owes part of
its success to recent industry
consolidation.
In late October, natural gas
spot prices delivered to pipelines
in the Southern U.S. have climbed
to US$2.91 per mmbtu which is well
above US$1.90 a year earlier.
Canadian exporters are benefitting
not only from higher prices, but
also from rising export volumes.
-IE Staff
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