Scotiabank Commodity Price Index Retreats in January, as Investment Funds Take Profits in Base Metals

Source:

"Uranium remains our top 'pick' for commodity investors in 2007, with spot prices soaring to US$85 per pound in mid-February (up US$10 in the latest week) from US$72 in late December," says Patricia Mohr, Vice President and commodity market specialist at Scotia Economics.

After reaching a record high in December, Scotiabank's Commodity Price Index, which measures price trends in 32 of Canada's major exports, dropped 5.2 per cent month-over-month in January. The All Items Index currently stands 0.9 per cent below a year earlier....

"Uranium remains our top 'pick' for commodity investors in 2007, with spot prices soaring to US$85 per pound in mid-February (up US$10 in the latest week) from US$72 in late December," says Patricia Mohr, Vice President and commodity market specialist at Scotia Economics. "Hedge funds and utilities are aggressively bidding for material in an environment where 80 per cent of global output from 2008-12 is likely already committed. With prices quickly rising in early 2007, we are revising up our average price forecast for 2007 to at least US$90. Prices appear headed towards the US$100 mark by year end."

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe