onelife1

When commodities are priced low producers are at risk b/c the producer sells at the commodity price, but their costs to produce it stays the same. This lowers their profit mgn (or if the prices go too low they may even realize a loss).

The definition of producers in these cases would be those at the begining of the production line. ie the farmers/ raw material miners. etc...
The commodities prices are what they receive when they sell the produced product.