COMMODITIES: Scotiabank's Commodity Price Index - Top 'Picks' for Investors in 2013
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."
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