David said:
Well, the prices "typically" go up when supply is low because the suppliers know that they can charge more and people will likely pay it. This is not a universal law of physics that can never be broken. This is purely a human decision. Prices do NOT have to go up just because demand increases. The supplier could charge the same price as always and make the same profit he did before. One could easily argue that it is greed that drives the prices up. Capitalism says that you do something to make a profit. Capitalism does not demand that you be greedy.
There are a lot of factors than simple supply and demand, and one of them I alluded to - and it plays a lot into this. And that's the flow of goods to the seller. If the shelves are always stocked, there's no particular consequence there - obviously, if the shelves aren't going to BE resupplied, and demand is too high, it's sensible that prices will go up.
But with a commodity like wood pellets - or anything that can be sold by volume - you have to take into consideration how long before your shelves are full and what future demand is going to be. For example, you're a wood pellet dealer, and you know that you're only getting in one more shipment before spring - when the demand will drop nearly to zero. How do you price your product, knowing that you'll have empty shelves a couple months before the season is over?
Like any capitalist, I also recognize there's certainly nothing wrong with getting as much as you can for what you're selling. I find it strange that if we're talking DVD players or PlayStations, no one whines about "greed", even though their pricing can be outrageous. Why? Well, because no one "needs" those things. (Most people don't really 'need' wood pellets either, unless they were dumb enough to become completely dependent on a commodity that they had NO IDEA how to get when they needed it).
I tend to have similar feelings towards those ill-diposed towards politics regarding oil. For reasons I can't guess, the oil companies are always greedy, the oil sheiks for some reason *aren't* (just being good capitalists and opportunists), all because they deal in a product that so many depend on - BUT - should they interfere in national poliicy to secure that lifeline, it's seen as EVIL. I just don't get why it's seen as stopping price gouging domestically, but robber baron imperialism when oil companies try to secure THEIR lifeline. Why can't THEY say, hey, I'm just trying to stop US from being gouged?
Anyway---
There are ways to tell if it's price gouging, but it's not easy.
appy....need it put through the grinder, then the pulper...then extruded into rabbit pellet looking things....can you do that for me while i wait? 
Holy crap! I got the call too, but didn't ask how much they were. That is insane! I may have to pass as well.
