How the prices of commodities in commodities market go up and down?

Answer 1

Simple answer is Supply and Demand balance. If supply is more price goes down , demand is more price goes up. for any commodity movement get these number PIS=/=ExC , P=production, I=Import S=Stock these three represnt suppply of any commodity. Ex-Export, C-COnsumption, these two represnet demand For any year , PIS is more than ExC , then that commodity price goes down. If ExC is more than PIS that commodity price goes up. Prediction of any commodity price, you will predit it before that Supply demand imbalance. That means todays wheat or rice prices are reflection of what will happen to its supply demand in next few months rather than its current balance. I worked for India's largest commodity exchange. Currently working as trader in Agricultural commodities.