waring
Apprentice
Joined: 02 Jul 2005
Posts: 1
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 Posted: 06/27/08 - 22:38 Post subject: |
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| Hello to you too, Preston. Price formation on the commodity markets are pretty much the same as in all other markets. Price depends on levels of supply and demand in a given moment. When supply is big and it exceeds demand for that commodity, price will fall. Then, because of the low price, consumers will start to buy that product and the price with start to rise. In other case, when demand is higher than supply, price will increase. Since there will be no buyers, price will have to fall. Now, markets are generally efficient, but I am sure that, by affecting supply and demand, you could affect prices. That would be all from me. Bye! |
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