Economist Paul Heyne Looked in the Newspaper and Found That

Multiple Choice

Economist Paul Heyne looked in the newspaper and found that in December of 1991 the price of wheat was $4.05 a bushel. The futures price for March 1992 was $3.87, the May price $3.64, the July price $3.33, September was $3.31, and the futures price for the following December was $3.51. What is the implication of these price trends?

A) Buying wheat futures was a pretty bad deal.
B) Speculators were forecasting increased scarcity of wheat.
C) Speculators were not forecasting increased scarcity of wheat.
D) Selling wheat futures was a pretty bad deal.