|Commodity Growth Still Slow|
|Written by Sharon Vanhouwe|
|Thursday, 01 November 2012 13:40|
It's a good news - bad news story for Saskatchewan commodities.
Winners over the next little while, according to the Scotiabank's Commodity Price Index.
Patricia Mohr, a commodity market specialist with Scotiabank, says as far as potash is concerned, she doesn't figure prices will rise until next year.
Mohr says in India, a big buyer of potash, the government, facing its own fiscal challenges has reduced some of the subsidies for potash purchases and that's contributed to a slower demand, however high grain prices should incite farmers to purchase more fertilizer in the long run.
She says there's been some rejuvenation in the housing market and with tight supplies of some types of lumber that should be good news for the mills in northern Saskatchewan.
As far as oil, she says both Canada and the U.S. produce more oil than we need and it's critical for western Canada to tap into the Asian markets and to do that the pipeline capacity has to be increased.