1.

As reports of freeze damage and potential wheat yield losses begin to be factored into the market in the spring, harvest time wheat futures prices increase. Summer corn futures prices are also seen increasing. Why might the corn futures prices be increasing?

A. The corn price increases are unrelated to the wheat production problems
B. Wheat is a compliment to corn, so higher priced wheat will increase the demand for
C. Wheat is a substitute for corn in livestock rations, so higher priced wheat may increase
D. Traders expect failed wheat acres to be planted to feed grains, increasing the supply
Answer» D. Traders expect failed wheat acres to be planted to feed grains, increasing the supply


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