0
Two things: oversupply, and lack of demand.
This is one of the reasons the government pays people not to farm, and buys commodities for its various aid programs. Uncle Sam knows farmers operate on the verge of bankruptcy when things are going good. He also knows if a few farmers flood the market with a commodity it's going to hurt everyone, including the farmers that did it. By subsizing the farmer things work out better and cheaper for us all - because last I checked I don't have enough room in my apartment to grow wheat.
What else can I help you with?
Why is the sticker price of a car higher than the selling price?
bargaining usually brings the price down....
What happens to the equilibrium price when supply goes down?
When supply goes down the equilibrium price tend also to fallcausing the price of commodities to fall and hence shortage of goods and services to the economy.
What is a commodity index used for?
A commodity index is something that tracks the price of different commodities. It often uses the average price of commodities, and is designed to encompass all types of commodities such as petrol and metals.
Does the price of commodities remain unchanged during the change in demand of those commodities?
Almost certainly not.
What is price of commodities?
The price of a commodity simply means the price of goods/stock/items.
What is selling stock at a price higher than the original purchase price brings the seller a capital?
It brings a capital gain.It brings a capital gain.It brings a capital gain.It brings a capital gain.
What is the bid an ask price in commodities?
"Ask" is the price sellers are asking for their commodity. "Bid" is the price buyers are willing to pay.
What does the term commodities trading mean?
The term "commodities trading" basically means that things are being traded instead of stocks. The things that are often traded are in goods, like food. Typically, as supply goes down, demand goes up, and so does price.
What are the benefits of commodity investments?
There are a few benefits that are advantageous for those investing in commodities. For investors looking to diversify their portfolios, having commodities in your portfolios adds diversity. Commodities tend to hold commodity value if the currency value goes down. In other words, if you invest in gold and the value of the currency goes down, the value of gold still holds because the value based on the weight or asset of the gold. Since commodities are based on consumer demands, investors' money are less at risk during inflation because as the demand for commodities like oil and gold go up, so does the price on those commodities.
What are the risks of commodity trading?
The risks of commodity trading are largely the same risks as in any market. Commodities go up and down with price depending on production levels and demand. Another factor that effect the price and creates risk is speculation. If one is trading commodities he should be aware of those factors and stick to proper risk management and trading plan.
Why does meat very in price?
Supply and demand, like most other commodities.
How much does the KegelMaster cost?
At regular price the KegelMaster costs nearly $100 at the popular retailer Amazon. There is currently a discount of 31% which brings the price down to $66.67, not including shipping.
