What are Canadian Commodity Stocks

Commodities like precious and base metals, timber and forestry products, and crude oil have always been one of the main propellers of the Canadian economy. Latest statistical data reveals that commodities now account for as much as one quarter of the country’s export. Canada is, to a large extent, a developed and commodity oriented economy. When shopping around investment opportunities in Canada, it is a good idea to keep an eye on the fast-growing and very dynamic commodity market. The recent trading trends of some of the most popular commodities are quite intriguing, with some good investment opportunities on the stock market.

The key players in the base and precious metals trading niche are as follows: Teck Resources Ltd – Canada’s largest mining, mineral processing and metallurgical company, established in 1906 and publicly traded on the stocks exchanges in Toronto and New York under the ticker TCK; the Vancouver and Johannesburg-based Platinum Group Metals Ltd – established in 2000. The company has specialized in the development of projects involving platinum mining and processing; Cameco is the second largest uranium company in the world and the largest uranium producer in Canada, established in 1988. The company is traded on the Toronto Stock Exchange under the ticker CCO, and on the New York Stock Exchange under CCJ; Barrick Gold Corporation: the largest pure gold mining company in the world was established in 1983 and is publicly traded on the stock exchanges in Toronto and New York under the ticker ABX. Alcan, more commonly known as Rio Tinto-Alcan, is the largest aluminum company in the world while Alber Diamond (currently known as Harry Winston Diamond Corporation) has specialized in diamond mining and retail in Canada.
With two of the world’s biggest countries – India and China – undergoing rapid industrialization, the global demand for base and precious metals is constantly rising, while their production is getting more and more costly. As a result, the shares of the mining companies are very likely to grow more expensive in the years to come.

Unlike the base and precious metals mining sector, the crude oil and natural gas segment of the Canadian commodity market is relatively calm. While the global demand for crude oil has been increasing frantically for a few decades now, the level of the global oil reserves has not changed considerably, neither have new refineries been scheduled to open in the foreseeable future. Against the background of constantly increasing energy prices, it is more than wise to consider buying shares in some of Canada’s big oil and gas companies. Some big names to think about are Talisman Energy Inc, Canada-based company developing oil and gas projects in North America and the North Sea and Petro Canada, one of the largest oil and gas corporations in the country. Other companies worth investing are Apache Corporation, Husky Energy, and Imperial Oil, among others.

As an alternative option, you may consider investing your money in some of the big forestry companies in Canada such as: Canfor Corporation, International Forest Products Ltd or Arbec Forest Products.



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