At week's end, values in the March wheat futures market appear to be falling. Prices fluctuated greatly throughout the week. But, Friday's values closed twelve to fifteen cents lower than when the market opened on Monday. This change is interesting news for those wishing to sell the commodity in the coming season. This new high may be better for those who have wheat ready to sell. But a low could set off a run of wheat sales in coming weeks. Last year was marked by surplus wheat production across the board, and most major wheat producers began the year with a heavy carryover of last year's ending stocks. With beginning stock running well above normal, the industry has suffered from unusually high stocks-to-use ratios. With the sudden fall of the wheat prices in every index, we may see a surge in wheat purchases. This could be good news for growers of wheat.
Expected changes in weather patterns, however, may begin to affect this trend. The predicted two inches of diminished rainfall could significantly affect the year's crop yield. The first signs of such a dry season will almost certainly lead to an increase in wheat futures purchases.
1 What is the article mainly about?
A the effects of price changes
B the causes of crop damage
C the best markets to invest in
D the expected carryover for the year

2 Why is the stocks-to-use ratio high?
A Ending stocks were low.
B Beginning stocks were high.
C Wheat purchases increased.
D Carryover was lower than usual.

3 What can you infer about futures purchases?
A They limit crop production.
B They create low carryovers.
C They decrease when prices drop.
D They are impacted by weather patterns.

Asel272727    2   27.03.2021 15:51    0