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A shuttle-train loading facility has 100 rail cars ready to load at the elevator, but only enough corn to fill half the cars. What would
A shuttle-train loading facility has 100 rail cars ready to load at the elevator, but only enough corn to fill half the cars. What would you expect to happen?
Group of answer choices
a)futures prices will rise
b) basis will increase (i.e. cash prices rise relative to futures prices) as the elevator seeks local corn to fill the rail cars
c) cash and futures prices will decrease
d) basis will decrease (i.e. cash prices decline relative to futures prices)
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