Commodity Market Fundamentals

Carley Garner

All markets are valued by a simple function between supply and demand; or at least that is how it seems throughout the typical economics 101 course. However, in reality, the components of supply and demand are highly complex and, some will argue, might be too overwhelming to effectively use as a speculative tool. Nonetheless, even those looking to trade commodities via technical analysis should have an overall idea of what might be impacting the data displayed on a price chart. It would be impossible to delve into market fundamentals in great depth within the scope of this writing, but I hope that you gain an understanding of price determinants and the ability to prioritize available information.