Scotiabank’s commodity price index rallied in July, rising 2.7% from June levels and continued to rally into early August, according to Scotiabank’s monthly commodity report released Monday.
A significant drop in the U.S. dollar in July against key currencies lifted dollar-denominated commodity prices last month, coupled with a return of investor appetite for commodities and equities.
The increase in commodity prices in July from June’s prices was broad based with all commodity groups advancing. Agriculture gained the most, rising 7.1% with strength in the prices of wheat, canola and barley and in Pacific salmon and Atlantic lobster.
The metal and mineral index rose 1.9% as base metal prices bounced back from declines in May and June, more than offsetting a temporary pull-back in gold and silver prices. Copper prices remained resilient and surged as high as US$3.38 per pound on August 19, yielding a 56% profit margin.
The index gained from a US$25 per tonne increase in the price of coal to US$225 per tonne and an increase in spot uranium prices to US$46.50 per tonne in mid-August from a low of US$40.75 in mid-June.
Lumber prices also rebounded in July, rising to US$215 from US$208 per thousand board feet. It has continued to rise in August to US$224.