Global commodity prices have not yet hit bottom, but they are not falling as fast as they have been, Bank of Nova Scotia said Thursday.

“The pace of decline is slowing and the forced, indiscriminate asset selling by funds – triggered by investor redemptions and tight credit – appears to be subsiding,” Patricia Mohr, vice-president of economics and commodity market specialist at the bank, said in a monthly report.

“Many prices are approaching average world cash costs, triggering substantial production cuts, new project deferral and tighter supplies.”

The report showed that Scotiabank's commodity price index fell in December for the fifth month in a row, this time dropping to 164.5 from 174.1 in November, a decline of 5.5 per cent.

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My comment - - WEL has seen the worst of it already, I believe. SP seems to be holding steady and it could start creeping back up as things progress.

I am expecting that the withdrawal of commodity production by many companies will soon accelerate a turnaround as shortages develop and prices rise. JMHO