commodities exchanges

How Are Prices Determined?

Prices on commodities exchanges are determined by supply and demand dynamics. Various factors influence these dynamics, including:
- Weather: Affects agricultural yields and, consequently, prices.
- Geopolitical Events: Can disrupt supply chains, impacting energy and metal prices.
- Economic Indicators: Data such as GDP growth, employment rates, and consumer spending can influence demand.
- Technological Advances: Innovations in extraction and production can alter supply levels.

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