That's simple: - You buy individual apples from the supermarket for maybe $6 a kilo - You can go to the markets and buy a 10kg box for maybe $15 - If you enter a contract to buy 1000kg a week for a year, you aren't going to pay anywhere near that.
On the flipside, if you have a single buyer with a regular supply chain, without the uncertainty, cost and bother of marketing and finding smallfry buyers, you'll happily take a lower price per kilo.
AGY Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)