Scotiabank’s Commodity Price Index rebounded in June by 2.6% month-over-month, and have risen by 9.5% month-over-month since March lows were recorded.

Read: Commodity prices rally, for more on May prices

“In March, commodity prices plunged to the lowest level(s) since January 2007, alongside a lackluster global economy,” says Patricia Mohr, vice president of Economics, and commodity market specialist at Scotiabank. “In addition, fierce competition for market share in oil and iron ore (as well as a very strong U.S. dollar) depressed gold and overall dollar-denominated commodity prices.”

Read: Look outside Canada for better returns

However “a moderate rebound in oil prices, both on the international and domestic front, lifted [Scotiabank’s] All Items Index in the second quarter.”

But, that was then followed by “commodity prices correct[ing] again in early July, alongside a trifecta of negative [global] developments.” That includes:

  • the fallout of the Greek debt situation (Read: ;
  • the correction of China’s equity markets; and
  • the prospect of an eventual return of Iran’s oil to world markets (likely not before 2016), following the nuclear accord (Read: Iran oil recovery could start in 2016: Fitch)

On the plus side, the outlook is positive for lumber prices, given U.S. housing permits have jumped to their highest level since July 2007.

Click here to read the full commodity report.

Also read:

Experts split on rate cut’s impact

Currency is key to future of economy

4 ways cheap oil helps emerging markets

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