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What is Commodity Risk?

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Commodity risk is the potential for changes in commodity prices to result in losses. Commodity prices tend to be volatile and can change rapidly over the short term. It's also possible for prices to shift higher or lower for long periods of time, a phenomenon known as a commodities super cycle. Many industries take commodities as a basic input and are highly sensitive to changes in prices. The following are a few types of commodity risk.
Overview: Commodity Risk
Type
Risk
Definition
The potential for losses related to the commodity price fluctuations.
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