TORONTO, Oct. 30, 2013 /CNW/ - Scotiabank's Commodity Price Index fell
in September, declining 2.8% month over month (m/m) and 3.8% year over
year (yr/yr). While the All Items Index will likely fall further over
the balance of 2013, the correction in commodity prices, especially in
metals and minerals, since April 2011 should be largely over by
"Traditionally, junior mining companies have been important contributors
to mineral exploration across Canada, finding and delineating deposits,
before selling them to senior producers for development," said Patricia
Mohr, Scotiabank's Vice President of Economics and Commodity Market
Specialist. "However, equity capital raised by junior mining companies
on the TSX Venture plunged in 2012 and has moved even lower in 2013
year to date.
A revival of equity capital for junior miners will depend largely upon a
cyclical rebound in metal and mineral prices and an improvement in
investor sentiment for senior producers. However, M&A activity, financed by private equity, is beginning to pick
Highlights in the report include:
The hard-pressed beef and pork industry in Western Canada received some
good news from the Comprehensive Economic and Trade Agreement (CETA)
between Canada and the European Union (if ratified).
Spot uranium prices have dropped from US$66.50 per pound - just prior to
the March 2011 Fukushima-Daiichi nuclear plant accident to US$34.75
today -instead of soaring as would have been the case, given the need
for low-cost, base-load electricity demand in rapidly growing emerging
markets. A recovery in uranium prices awaits the restart of reactors in
Japan - likely to begin in 2014.
While potash prices will probably drift down over the balance of the
year, the global cost curve indicates that most of the decline has
already occurred, and prices are near bottom (at least on a sustainable
Read the full Scotiabank Commodity Price Index at http://www.scotiabank.com/ca/en/0,,3112,00.html.
Scotiabank provides clients with in-depth research into the factors
shaping the outlook for Canada and the global economy, including
macroeconomic developments, currency and capital market trends,
commodity and industry performance, as well as monetary, fiscal and
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For further information:
Patricia Mohr, Scotiabank Economics, (416) 866-4210, firstname.lastname@example.org; or Devinder Lamsar, Scotiabank Media Communications, (416) 933-1171, email@example.com.