Information in a forecast of the future price of corn

Reference no: EM131137127

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 positions in corn. Explain how the farmer would use this information in a forecast of the future price of corn.

Reference no: EM131137127

Questions Cloud

The capital-budgeting process so important : The conference on evaluating capital projects has been very helpful. You have received a significant amount of information and multiple projects to evaluate to hone your skills. To adequately teach Grammy and the board you will need to answer seve..

Most powerful emblem for the transformations : George Ritzer notes that William Kowinski chooses the mall as the most powerful emblem for the transformations of American society, in that it embodies the best and worst of American dreams. Ritzer argues that he finds the fast-food chain a stronger ..

Importance of protecting the country from terrorist attacks : Weigh the relative importance of protecting the country from terrorist attacks and preserving human rights and individual liberty?

Interested in finding the shortest route between locations : Uber cabs identified 10 primary pickup and drop locations for Uber customers in Las Vegas. In an effort to minimize transportation costs, the company is interested in finding the shortest route between locations. What is the shortest route from node ..

Information in a forecast of the future price of corn : 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 ..

What is a risk factor when assessing for suicide : Sam, a 5th-grader, frequently gets aggressive when he is frustrated. His teacher has had to separate him from others to keep things from escalating. What would be the most effective approach to assess Sam's behavior?

Faculty have different teaching loads : The MIS Department of University of Nevada, Reno has 8 faculty members that need to be assigned to cover 22 MIS class sections. Faculty have different teaching loads, thus some can only be assigned to 2 sections, while others can be assigned to 3 or ..

Implement voice recognition technologies : What are some of the benefits afforded to organizations implementing voice recognition technologies in these settings? How can you quantify these benefits to assess the value of the investment?

Write an essay about the thirty years war : Write an essay about the thirty years war - write what complications prolonged the war and what are the results for the war.

User Account

All Pages