Economy

Saskatchewan sees budget deficit shrinking on higher potash, oil prices

Published

2 years ago

March 23, 2022

The Canadian province of Saskatchewan on Wednesday forecast a deficit of a C$463 million ($369 million) in the 2022-23 fiscal year, less than a fifth of last year’s C$2.6 billion deficit, as stronger oil and potash prices bring in more revenue.

The province, home to the world’s biggest potash industry, accounting for about one-third of annual global production, said it expects revenue to rise by 18.5% to C$17.2 billion in the fiscal year starting in April. Spending is projected to increase by 3.1% to C$17.6 billion.

Potash revenue is budgeted at C$1.5 billion in 2022-23, up from the 2021-22 forecast of C$419.8 million, reflecting a higher average price forecast.

Potash prices are near a 10-year high, and the recent sanctions on Russia and Belarus, the second- and third-largest potash suppliers, are fuelling fears of food shortages globally. The potash price is forecast to increase by 48% in 2022, contributing to Saskatchewan’s strong economic outlook, the provincial government said in the budget.

The Saskatchewan Party government, led by Premier Scott Moe, expects the removal of pandemic restrictions and strength in potash, oil and gas prices, and exports to drive economic recovery. Saskatchewan expects deficits to continue shrinking and said it was on track for a balanced budget in fiscal year 2026-27.

The budget assumes an average North American oil futures price of $75.75 per barrel during its fiscal year, generating C$867.5 million in royalties.

($1 = 1.2558 Canadian dollars)

(Reporting by Ismail Shakil in Bengaluru; Editing by Mark Porter)

Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

17 hours ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

1 day ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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