Bank of Nova Scotia’s commodity price index, which measures price trends in 32 of Canada’s major exports, rose by 1.2% month-over-month in June, rising to a new record high for the sixth consecutive month.

The all items index is now 212.6% above the cyclical low in October 2001.

The oil & gas index led the way in June, surging 5% month-over-month and 71.7% year-over-year. The strength in energy prices was broad-based, but led by light crude oil and natural gas export prices. West Texas Intermediate (WTI) oil rose from US$125 per barrel in May to US$134 in June and surged to an all-time record high of US$147.90.

“Oil prices have retreated to the US$124 mark in late July, still 67% above a year earlier,” says Patricia Mohr, vp, economics and commodity market specialist at Scotiabank. “Market attention has shifted from concerns over geopolitical supply risks and disappointingly slow new oil field development to heightened concern over U.S. economic prospects, following the Fed Chairman’s semi-annual monetary policy report to Congress, and easing U.S. petroleum consumption in reaction to record oil prices.”

The metal and mineral Index eased by 0.8% in June, with most base metal prices, except aluminium, loosing ground. However, sulphur prices at the Port of Vancouver leapt to US$750 per tonne in June, up from US$660 in May and only US$55 a year earlier, producing the biggest spike (up 1,264% year-over-year) in the history of the Scotiabank Commodity Price Index.

Spot potash prices for overseas sales were unchanged in June at an average of US$525 per tonne, but have jumped to US$762.50 in July.

Spot uranium prices have also rallied back to US$64.50 per pound from a low of only US$57 in mid-June. However, term contract prices fell from US$90 to US$80 in late June. Prices retreated earlier this year alongside lower uncovered utility requirements, though discretionary buying to take advantage of bargain prices has been substantial.

The agricultural index also fell by 4.4% in June to a level still 29.6% above a year ago. Wheat prices have lost significant ground since spiking in February, with a bumper crop expected this year in Europe, better growing conditions around the Black Sea and stepped-up international plantings in areas such as Australia, spurred by higher prices. However, current projections for 2008-09 are likely overstating the increase in world ending stocks, given lingering dryness in Australia and Argentina.