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Answer: Contango from November through the following September
Corn is a seasonal, storable agricultural commodity. After the harvest period, supply is abundant and prices are typically lower. As time passes toward the next harvest, storage and financing costs accumulate, so deferred futures prices tend to be higher than nearby prices. That implies **contango from November through the following September**.
Author: Manit Arora
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Question 188.4. If corn is harvested from September to November, what is the most likely implication on the corn futures curve?
A
Contango from September to November
B
Backwardation from November through the following September
C
Contango from November through the following September
D
Contango all year as the market is able to incorporate the fully predictable harvest season
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