3. The following are sugar futures prices from October 1, 2009 and October 1, 2013. (Prices are quoted in cents per pound). < Futures prices Maturity < 2009 < 2013 March 24.64 < 18.32 May < 23.49 < 18.23 July 21.91 18.14 < a. [5 points] Is the futures curve in contango or backwardation in 2009? < b. [10 points] What do you think is true of sugar inventories in October 2013 versus their levels at the same time in 2009? < < c. [10 points] On October 18, 2013, the Financial Times reported that a fire destroyed six warehouses at the Brazilian port of Santos one of the world's biggest sugar terminals. The loss of sugar was estimated to be 180,000-300,000 tonnes, or, about 7% of the amount shipped from Brazil in the prior month. What do you expect will happen to both the level of the March 2014 futures price and to the "slope" of the futures curve, i.e., to the difference between March and May futures prices?