So, what scenario could drive the price down (if you suggest it could be the opposite)?
Good question to exercise the brain cells.
Assume the market for beeswax is competitive. If the news is false and there is in fact no negative supply shock, and if there is a good harvest that increases supply, we would expect lower prices assuming stable demand.
Even if the false news distorts buyer behavior (e.g. candle hoarding) resulting in an increase in demand, if the increase in supply is sufficient to offset the increased demand, prices should still decline.
Finally, if the news happens to be true and there is indeed a negative shock, it is theoretically possible that demand for beeswax could also suffer a significant enough decline to lower prices. Perhaps substitutes to beeswax become more popular. Or perhaps a longer-term change in lifestyles results in a dramatic decline in the demand for aromatherapy products, honey, or whatever. If the supply shock is fairly minor, then the lifestyle trend could in principle overcome the shock.
There are lots of possible scenarios for price decline if you allow other factors unrelated to the news story to enter in. Real markets are complicated, and conventional wisdom often discounts important information, which is why intuitive ideas about what markets "should" do are so often wrong.
Granted, if the news is as reported, then we would be surprised to see a price decline. However, that depends on whether the news is in fact true. Thus far the claims about bee declines seem to be mostly anecdotal rather than factual.
