Commodity markets have, at various times, exhibited significant price volatility. The combination of inelastic demand and supply in many commodities means that, at least in the short term, unanticipated changes in demand or supply can generate large price swings. These price swings can be both a boon and bane subject to the need of the market participant. While a sudden surge in prices of a certain commodity could be disappointing for one, the other could be at an advantage.A commodity market comprises of hedgers, investors, traders and speculators. Hedging is a process which helps you reduce and control risk or de-risk production, processing and trade.