Question

Question: The article mentioned that, even though the United States Department of Agriculture (USDA) increased its estimates of the quantities of corn and soybeans that would be harvested from the 2019 growing season, futures prices for corn and soybeans rose in January. Which of the following is the reason given for the price increases? A Analysts and traders expect lower plantings of corn and soybeans in 2020, B Makers of products, such as cereals, made with corn and soybeans were expected to increase production of these products. C A significant number of farmers suffered financial losses in 2019 and were expected to declare bankruptcy. D The USDA forecasted very rainy spring weather in growing areas for corn and soybeans. E The USDA forecasted an increase in the demand for animal feeds that are made from corn and soybeans.

Answer 1

The correct option is:

E The USDA forecasted an increase in the demand for animal feeds that are made from corn and soybeans.

Reference:

https://www.usda.gov/oce/commodity/wasde/wasde0120.pdf