In the world of basic commodities nearly every market participant, whether a producer or consumer, is a price taker, accepting the general price level prevailing at the time. For example, the individual consumer of gasoline has little choice but to take the price at the pump or go elsewhere. Same with corporate consumers like airlines and other transportation entities. They can hedge and fix their costs, but that hedging must be based upon current prevailing prices. Even large producers like the oil companies must take what prices the market provides, although the largest oil producers, like Saudi Arabia, could set (make) oil prices if it wanted to (at least temporarily).
That’s the way it is and should be with world commodities – 99.9% of all consumers and producers are price takers, that is, accepting whatever the prevailing price happens to be.
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