How can big businesses go about searching?
Lets say there's a commodity XYZ the corporation uses as a raw material in manufacturing, and it signifies a large enough annual expense they dont need to take a risk on changes in price.
Do they
a) decide that commodity XYZ is trading in what they consider to be a low price, then decide to buy whatever amount they deem appropriate? OR
b) every quarter/year/whatever time period, decide to buy a particular quantity of the commodity because they don't have any clue which direction it's heading andthey just wish to lock in the price?
Quite simply, do they (a) know the market so well that they know when its in a fantastic price to lock in prices long term or (b) have no clue what direction price is going and just need to lock in prices to avoid risk?
Or perhaps neither of those situations are accurate.