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Farmers sometimes store their grain and wait to sell at a later date if they think market prices will increase. If they are accurate in their forecasts, this can be a profitable strategy. Let look at an example and determine the best course of action for Farmer Jones. Farmer Jones just harvested 80,000 bushels of wheat that he currently has in grain bins on his farm. He considered selling this years harvest but the current market price is only $6.50 a bushel. He strongly believes that in one year from now, wheat prices will be at least $8.00 a bushel.
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