How does the supply and demand of commodities impact their prices?

The supply and demand of commodities play a crucial role in determining their prices. If the supply of a commodity exceeds the demand, then the price of the commodity is likely to decrease, as sellers will need to lower their prices to attract buyers. Conversely, if the demand for a commodity exceeds the supply, then the price of the commodity is likely to increase, as buyers will need to bid up the price to secure their desired quantity. Factors that can affect the supply and demand of commodities include weather conditions, political events, economic trends, and technological advancements.