Title: Why Commodity Prices Move Up and Down
Headings: 
Assets & Markets Commodities
Why Commodity Prices Move Up and Down
Key Takeaways
Commodity Market Prices
Commodity Research Sources
The Bottom Line

Content: Commodity Market Prices
Commodity markets can be volatile, and there may appear to be no rhyme or reason to their movements. Commodity pricing can be unpredictable even for the most experienced traders. However, as a rule, their price movements are a function of supply and demand. When the market shows a lower supply, prices tend to rise. Conversely: higher supplies generally result in lower prices. Corn futures are a prime example of this phenomenon. In early 2006, corn futures were trading at around $2 per bushel, which represented the low end of the price range for the 20 years prior. This was mainly caused by soaring crude oil prices, which rapidly increased the demand for ethanol which happens to be produced from corn. Demand was likewise increasing from rapidly growing countries like China.