Question: In August 2 0 1 9 , U . S . corn futures hit a three - month low after China said it would impose

In August

2019,

.

.

corn futures hit a three

-

month low after China said it would impose additional tariffs on U

.

.

grain products. Suppose the tariffs are believed to be a temporary trade policy. How do you think news of the tariffs would impact the implied convenience yield

(

.

.,

the convenience yield implied by the spot

-

futures parity formula

)

between short and long

-

maturity corn futures prices

?

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