Title: Commodity Price Risk Definition
Headings: Commodity Price Risk
Commodity Price Risk
What Is Commodity Price Risk?
Key Takeaways
Understanding Commodity Price Risk
The Risk to Buyers: Automobile Manufacturers
The Risk to Producers: Oil Companies
Hedging Commodity Price Risk
Factors in Commodity Price Fluctuations
Political Factors
Weather
Technology

Content: Weather
Seasonal and other weather fluctuations have a substantial impact on commodity prices. The end of summer brings with it plentiful harvests, so commodity prices tend to fall in October. These seasonally depressed commodity prices may be one reason major stock market crashes often happen in October. Droughts and floods can also lead to temporary increases in the prices of certain commodities. Technology
Technology can have a dramatic influence on commodity prices. Aluminum was considered a precious metal until procedures for isolating it improved during the 19th and 20th centuries. As technology advanced, aluminum prices collapsed.