and zinc is going higher next year which will helpfrom another...

and zinc is going higher next year which will help

from another post on the general forum

Uranium and zinc are our top ‘picks’ for investors in 2007, with precious metals, especially silver, also expected to benefit from further weakness in the U.S. dollar,” says Patricia Mohr, vp and commodity market specialist, Scotia Economics.

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Scotiabank releases commodity price index for November


Thursday, December 21, 2006


By IE Staff


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Bank of Nova Scotia’s Commodity Price Index, which measures price trends in 32 of Canada’s major exports, posted a strong rebound in November, up 7.7% month-over-month, after slipping in September and October.

The All Items Index is currently 4.3% higher than a year earlier and is still hovering near the May 2006 record high.

Nickel was the top performing commodity in 2006, climbing an extraordinary 159% over the past year. World stainless steel production advanced by 12% in 2006, boosted by robust demand for oil drilling equipment, electric power expansion and booming aircraft orders. A ‘super-cycle’ is expected in nickel, with prices staying strong through 2008.

“Uranium and zinc are our top ‘picks’ for investors in 2007, with precious metals, especially silver, also expected to benefit from further weakness in the U.S. dollar,” says Patricia Mohr, vp and commodity market specialist, Scotia Economics. “Potash fertilizer should yield good gains for investors. Wheat, barley and canola should also perform quite well relative to past experience, linked to new demand for ethanol additives in gasoline and biodiesel, although metals & minerals are expected to retain their leadership position.”

Uranium was the third-best performing commodity in 2006 and will likely be the top performer in 2007.

The Agricultural Index strengthened in November, as canola and barley prices gained significant ground and wheat prices maintained their recent strength, more than offsetting slightly lower cattle and hog prices.

“European use of domestically grown rapeseed to produce biodiesel, for blending with petroleum-based diesel fuel, has cut its rapeseed exports and lifted its imports of canola oil,” says Patricia Mohr. “Canada should garner a large share of stepped-up European imports of canola oil in coming years. Increased use of corn for ethanol manufacture in the United States, a gasoline additive, has also lifted both U.S. corn prices and Canadian barley prices. Incremental demand for world biofuel production should bolster both grain and oilseed prices in 2007, spelling a ‘new day’ for Western Canadian farmers”, says Mohr.

West Texas Intermediate (WTI) oil prices are expected to hold at fairly lucrative levels averaging US$60 in 2007 compared with US$66 in 2006 and US$56.56 in 2005. Global oil consumption should expand at a slightly stronger pace in 2007 (up 1.7%), boosted by somewhat lower prices, with China (up 6%) and the Middle East (up 5.4%) remaining ‘growth’ markets for petroleum.