> Lots of poor people are happy to eat more meat (or any meat at all), if the price comes down.
Sure, but what makes the price come down? Industrial production is absolutely aimed at ensuring a solid, steady supply. Sharp fluctuations are rare, and are usually due to political upheaval. Prices might spike, but they rarely drop dramatically, because technological advances that lead to increased supply are usually already priced into the market.
It's like that with any commodity market. There are so many people's lives and pocketbooks relying on stability in production and pricing that checks are built right into the market at every level, from production to end-consumer purchasing.
Speculators lose their shirts in commodity markets because they aren't established players, they're gamblers. That gives the segment the illusion of being way more volatility than there really is. Everybody else is insulated very well from random shocks.
Sure, but what makes the price come down? Industrial production is absolutely aimed at ensuring a solid, steady supply. Sharp fluctuations are rare, and are usually due to political upheaval. Prices might spike, but they rarely drop dramatically, because technological advances that lead to increased supply are usually already priced into the market.
It's like that with any commodity market. There are so many people's lives and pocketbooks relying on stability in production and pricing that checks are built right into the market at every level, from production to end-consumer purchasing.
Speculators lose their shirts in commodity markets because they aren't established players, they're gamblers. That gives the segment the illusion of being way more volatility than there really is. Everybody else is insulated very well from random shocks.