Dominated by hedgers holding long position in corn

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Reference no: EM131879197

On July 10 a farmer observes that the spot price of corn is $2.735 per bushel and the September futures price is $2.76. The farmer would like a prediction of the spot price in September but believes the market is dominated by hedgers holding long position in corn. Explain how the farmer would use this information in a forecast of the future price of corn.

Reference no: EM131879197

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