Why are commodities volatile ?

                                                           

There are numerous reason for commodities volatility, some major reasons are as follows-

Demand factor

Since numerous farming items are fundamental necessities, a fall in cost doesn't have a tendency to urge individuals to purchase more nourishment. On the off chance that potatoes are less expensive would you eat more potatoes? In the event that espresso was less expensive, would you drink more espresso? – likely not in particular. Consequently, an expansion in supply prompts a correspondingly greater fall in cost. In the event that request is more value flexible, the cost wouldn't fall to such an extent.

Supply affected by climate/nature

Developing products is affected by climate and malady. A sharp ice can wipe away a harvest prompting higher costs. This sort of unpredictability isn't predominant in produced merchandise.

Short term profiteers

Numerous products are made more unstable by hypothesis (when speculators purchase and offer oil prospects). Frequently this hypothesis depends on financial basics however theory can likewise misrepresent value developments. For instance, if oil costs are anticipated to rise, financial specialists will purchase now – making costs rise. It is difficult to isolate theory from financial basics as they are frequently interlaced. Be that as it may, hypothesis has a substantially greater impact on the cost in horticulture and oil than in assembling – where theory is to a great extent truant.

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(Source : https://www.quora.com/Why-are-commodities-volatile)