The average price of Canada's major commodity exports retreated 4.6% in July after two consecutive months of gains, according to Scotiabank's commodity price index released Thursday.
The oil and gas index led commodity price declines, falling 7.5% in July with broad-based declines in Alberta light and heavy crude oil, Canadian natural gas export prices and propane prices.
The metals and minerals index fell 5.2% due primarily to a 31% decline in spot potash prices to US$492.50 from US$710 in June.
The agricultural index also fell by 4.2% with grain prices falling alongside almost ideal growing conditions in the U.S. and prospects for the second-highest corn crop in U.S. history.
Despite the declines, the report expected prices to rebound in the coming months on the heals of economic signs of recovery in some G7 countries and increasing growth in China.