[OS X TeX] Xelatex fontspec Texshop and command line

[Curiouslearn]

Thanks again. Please see below for my replies to both Herbert and Peter.


@Herbert

I tried all three

using

    \setmainfont

Specifying,

%%!TEX TS-program = xelatex
%%!TEX encoding = UTF-8 Unicode

at the beginning of the file,

and,

using Hoefler Text instead of Cambria.

I get the same results as before: works fine
with TeXshop and fails to compile from the command line and ends
with the same error that I posted earlier.

@Peter

----------------------------------------
Terminal Environment
----------------------------------------
This is what I get from the env variable in the terminal

MANPATH=/usr/share/man:/usr/local/share/man:/Library/TeX/Distributions/.DefaultTeX/Contents/Man:/usr/X11/man
TERM_PROGRAM=Apple_Terminal
TERM=xterm-color
SHELL=/bin/bash
TMPDIR=/var/folders/-D/-DCXTRU9FnajY0SmZHm29E+++TM/-Tmp-/
Apple_PubSub_Socket_Render=/tmp/launch-sq5osV/Render
TERM_PROGRAM_VERSION=240.2
OLDPWD=/Users/username/Dropbox/Paper_ProductDifferentiation/ComputerCode/Price_Decisions
USER=username
COMMAND_MODE=unix2003
SSH_AUTH_SOCK=/tmp/launch-ftsvGR/Listeners
__CF_USER_TEXT_ENCODING=0x1F6:0:0
PATH=/Library/Frameworks/Python.framework/Versions/Current/bin:/Applications/Mkvtoolnix.app/Contents/MacOS/:/Library/Frameworks/Python.framework/Versions/Current/bin:/Library/Frameworks/Python.framework/Versions/Current/bin:/Library/Frameworks/Python.framework/Versions/Current/bin:/Library/Frameworks/Python.framework/Versions/Current/bin:/Applications/ConTeXtMinimals/tex/texmf-osx-intel/bin:/usr/bin:/bin:/usr/sbin:/sbin:/usr/local/bin:/usr/texbin:/usr/X11/bin:/Applications/ContextMinimals/tex/texmf-osx-intel/bin
MKL_NUM_THREADS=1
PWD=/Users/username/Dropbox/Temp
LANG=en_US.UTF-8
SHLVL=1
HOME=/Users/username
LOGNAME=username
DISPLAY=/tmp/launch-m9ty8q/:0
_=/usr/bin/env


----------------------------------------
Texshop Environment
----------------------------------------
#!/bin/tcsh

set path= ($path /usr/texbin /usr/local/bin)
xelatex  "$1"



If I run

kpsewhich cmr12.tfm

I get

/Applications/ConTeXtMinimals/tex/texmf/fonts/tfm/public/cm/cmr12.tfm

Finally, the reason for the message

No File minimal_example.aux

is that in both cases (TeXShop and the command line) I deleted
all files other than minimal_example.tex before trying to run
xelatex. In case of the command line, the .aux file is n

Possibly, the problem is with minimals Context installation. However,
what is not clear is, why this problem does not arise in TeXShop.

Thanks again for trying to help me.