An inverted structure in futures commodity prices (prices falling over time) from the December to May contract

A. potentially rewards storing the commodity for selling later.
B. means potentially higher expected profits from postponing selling to May.
C. usually means higher expected profits from selling farm output in December rather than in May.
D. Both A and B.


Ans: C. usually means higher expected profits from selling farm output in December rather than in May.

Economics

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