With other factors unchanged, any change in the relationship between supply and demand may affect the change of commodity prices. On the one hand, the change of commodity prices is influenced by the change of supply and demand; On the other hand.
Changes in commodity prices will in turn have an impact on supply and demand:
Price rises, supply increases and demand decreases;
As prices fall, supply decreases and demand increases.
This interaction and causal relationship between supply and demand and price makes the analysis of commodity supply and demand more complicated, that is, not only the influence of supply and demand changes on prices, but also the reaction of price changes on supply and demand should be considered.
Because there is a long time difference between futures trading and physical delivery, and futures trading can be carried out through short selling, the influence of changes in commodity supply and demand on futures market prices will be greatly affected by changes in traders' psychological expectations, which will lead to the general trend of repeated and frequent fluctuations in futures market prices.