Canada’s June trade balance was released overnight, Ryan had the details, here: June 2014 Canadian trade balance +1.86bn vs 0.0bn exp

  • The surplus was the largest since late 2011

This is just a follow-up post with reaction from CIBC World Markets (analyst Peter Buchanan). He says:

  • the surplus “easily eclipsed the market’s expectation for a -$0.15 bn shortfall, with May’s also revised substantially upward to show a $0.6 bn surplus rather than the previous modest shortfall.”
  • A “dramatic” improvement “
  • Driven by a jump in exports, which, posted a 1.1% gain m/m and a fall in imports, down 1.8% from May
  • The export gains, were at record levels – “broadly based with most categories, other than autos, posting significant increases from a month earlier” – and the decline in Autos came after 4 consecutive monthly increases