29.04.2009 - Back to basics: What affects commodities prices
From Istockanalyst.com: In general, there are four main factors that affect commodities prices: Supply & Demand, Inventories & Stocks, Currency and Inflation. Let's go down the list to best understand their harmony. If supply and demand are in perfect balance (assuming no other factors affect the price), commodities prices would go nowhere. Take corn for example. If the demand for corn was exactly one ear each day, and a farmer could grow exactly one ear every day, supply and demand would be in balance and the price would not change......Full Article: Source