TD Bank Financial Deputy Chief Economist on commodity prices
Vice President and Deputy Chief Economist for TD Bank Financial Derek Burleton tells Rural Roots Canada prices for commodities will remain high.
“My general view on commodity prices overall is that is that they are going to remain relatively high, I don’t think we will see new records in most areas. Cattle might be one area where we see decent price conditions. However, from a crop perspective the supply side should improve this year from what was a very difficult growing season last year. It is too early to say a bumper crop but certainly off very low levels last year. That will keep prices in check.”
Burleton says this is a very positive sign and should lead to good things this year.
“Carry over levels for stocks for various grains are still relatively low, that will help support prices. I think it will be a calmer year from a volatility stand-point, we will still probably go through some ups and downs, less volatile though and one where global demand will show some traction,” said Burleton.
Burleton is confident this demand will result in crop and livestock prices remaining on a high plateau long term.
“How can you not agree with the fact that as emerging markets become more mature just their sheer size is going to tug along a lot of value added food products and that raises a lot of potential for niche products in Canada for just general food production,” said Burleton.