The Agricultural Futures Exchange of Thailand was established in 2004 by the commerce ministry to help develop trading of futures contracts on rice, rubber and tapioca. The government aims the futures exchange to provide farmers and traders the hedging tools to protect the price fluctuation of those agricultural products.

However, the limited number of participants in the exchange has allowed traders with better information and fundamental analysis such as crop harvest, government stockpile and domestic demand to make more accurate forecast of the futures prices. There are almost none technical analysts in the exchange because trading patterns and price charts apparently fail to predict their prices. Some traders have also benefited from using inside information on the trading.

With this information, it is an indication of which form of market efficiency that the U.S. financial markets are? Please describe the reasons to support your view. (5 points)