The Canadian trade deficit widened to $1.2 billion in October from a revised $0.9 billion shortfall (previously reported as $0.4 billion) in September. Lower Canadian oil prices were the main factor weighing on the balance in October. Excluding price-effects, the trade balance in volume terms improved somewhat. Our Take: A wider trade deficit was not unexpected with Western Canadian oil prices continuing to fall in the month. Controlling for what ended up being a 10% drop in the price of energy exports, the trade balance in volume terms improved somewhat. Export volumes increased 1.4% on relatively widespread gains — although led by a big 4.8% jump in motor vehicle and parts shipments. Non-energy exports were up 2½% from September and closer to 7% from a year-ago. Imports volumes were softer, holding steady following four straight monthly declines, but despite an increase in equipment imports that is a good […]