Scotiabank's commodity price index, which measures price trends in 32 of Canada's major exports, rose by 1.3% month over month in March.
It was the index’s ninth consecutive monthly gain, rising in March to a level 50.9% above the April 2009 low.
According to the report, China's GDP growth, which is of vital importance to global commodity markets, rose by 9.7% year over year 2011’s first quarter.
“Despite this positive development, some commodity prices lost ground in mid-April, with institutional investors taking profits, concerned that tightening monetary policy in China – to curb rising consumer price inflation, up 5.4% year-over-year in March – would take a toll on future growth,” said Scotiabank commodity specialist Patricia Mohr.
The oil and gas index led the advance in commodity prices in March, surging by 6.4% month-over-month.
According to the report, the jump in oil prices since mid-February reflects a widening geopolitical risk premium in world oil prices linked to political upheaval in Libya as well as parts of North Africa and the Middle East, likely lasting for some time.
The metal and mineral index inched down in March as slightly lower copper, zinc, nickel and uranium prices just offset a further gain in fertilizers and stronger precious metal prices. Potash prices continue to climb amid high grain and oilseed prices.
"Gold reached a new all-time record of US$1,518 per ounce in intra-day trading on April 25, while nearby silver futures climbed to US$49.82, almost reaching the record in January 1980," noted Mohr. "A loss of investor faith in the two reserve currencies has driven prices higher. “
The report also predicted a milestone year for copper.
Mohr noted that copper prices could retest previous record highs this year: The copper market promises to be buoyed by renewed demand from China and reconstruction in Japan.