Poll of the Day > Hey smartie people... does stock/commodity price always correlate with consumer$

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Lokarin
06/07/22 2:45:10 PM
#1:


Like, if Corn is trading at $1 and you adjust for some standard rate of markup then the corn at the store will also be $1?

Or is it arbitrary and if Corn starts trading at $35 the store will instead decide to sell for $190... far beyond their standard markup practice

or whatever

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Blightzkrieg
06/07/22 2:57:12 PM
#2:


No.

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Tutoria
06/07/22 3:52:52 PM
#3:


yes

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11110111011
06/07/22 4:06:00 PM
#4:


maybe.
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DragonClaw01
06/08/22 1:37:41 AM
#5:


$190 for corn? Are we talking yen or something.

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Lokarin
06/08/22 7:27:30 AM
#6:


DragonClaw01 posted...
$190 for corn? Are we talking yen or something.

It's an arbitrary number to express a consumer price that is far beyond stock price+typical markup

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adjl
06/08/22 8:12:32 AM
#7:


In an ideal, infinite free market, they would. In practice, consumer prices tend to increase whenever commodity prices increase (with a certain delay/buffer to keep pricing competitive and minimize sticker shock) so the corporations driving prices can maintain their margins, while decreases in commodity prices often result in corporations keeping prices constant for a while so they can milk those savings for their own benefit instead of passing them on to the consumer, generally only dropping them when they can't get away with that greed anymore.

The current price of gas is an excellent example of this: Crude prices are actually down and there is no genuine global shortage, oil companies are just able to get away with jacking up their prices because most people accept that they're going to be high due to Putin adopting the role of Douchewaffle Supreme and the belief that that's going to negatively impact global oil supply (which it has, but not this much).

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Kyuubi4269
06/08/22 8:17:27 AM
#8:


Stock price is not connected to commodity value, however they both derive their value from the demand of the market and the effectiveness of production/supply. Both are speculative, but commodity price is more reliant on immediate return, while stock price is more reliant on public perception and thus long-term returns.

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Lokarin
06/08/22 8:22:24 AM
#9:


adjl posted...
Crude prices are actually down and there is no genuine global shortage

That's where I'm getting some trickery, the stock price for Crude Oil is actually up 72.75% for the year so far... but people keep saying it's down

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