Prediction for the impact on the basis

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1. Suppose a summer drought destroys much of this year's wheat harvest. What would be your prediction for the change in the basis, F - S?

2. Oil inventories are at record levels and oil is being stored in ever-more expensive facilities such as ships at sea. What is your prediction for the change in the basis, F - S?

3. The interest rate has fallen to record lows. What is your prediction for the impact on the basis, F - S?

Reference no: EM132797020

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