Commodity prices poised to keep falling, and the end isn't yet in sight

New York

IT'S hard not to notice that commodity prices have been plummeting. It seems the price of everything that is grown or pulled out of the ground - from oil and gas to sugar and copper - has declined 46 per cent since early 2011, causing bankruptcies and industry consolidation.

Prepare for further big declines. Directly or indirectly, developed countries consume most commodities. Yet economic growth and demand for commodity-based products remain weak as North America and Europe continue to unwind their financial excesses. The earlier rapid expansion of debt, which helped fuel robust growth, is being reversed.