CIBC said: "In 2013, commodity prices will receive a lift from raw material re-stocking, after liquidation or deferred orders in 2012. This is already the case in China, where a pick-up in orders from steel producers, after a sharp inventory correction last summer, has boosted spot iron ore and coking coal prices.
"Lumber and OSB are our top investor picks - expected to post a multiple-year recovery through mid-decade. Western Spruce-Pine-Fir 2x4 lumber prices have climbed from an average of only US$255 per thousand board-feet (mfbm) in 2011 to US$298 in 2012 and should reach US$340 in 2013 and US$375 in 2014. (Lumber prices peaked at US$454 in August 2004, as U.S. housing starts approached record highs in early 2005.)
"Turning to uranium - a deeply discounted commodity - spot prices may have bottomed at US$40.75 per pound in early November, rallying to US$44.75 in mid-December. Long-term contract prices remain at US$60 prior to escalation at time of delivery.
"Palladium may also be set for a rebound alongside strengthening demand in China for auto catalysts for small-engine gasoline cars, supply uncertainties in South Africa and the possible depletion of the Russian government stockpile."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
