Young and Frederick - ScotiaMcLeod Whitby

Scotiabank says its commodity price index was up 20.7 per cent in December from its cyclical bottom in April, citing a widespread rebound in the prices of most natural resources.

The index gained 2.9 per cent between November and December, ending 2009 on a strong note due to increased interest in commodities as an investment.

Report author Patricia Mohr says the search for higher investment returns spurred a $60-billion (U.S.) inflow into commodity-related investments in 2009.

Base metals benefited most dramatically from investor interest due to burgeoning demand as China's economy continues to heat up.

Metals and minerals led the commodity index in December, and Scotiabank has revised its forecast for base metal prices upwards as a result.

Scotiabank says potash prices fell again in December but appear to have hit bottom.