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Wheat rose to the highest price since May on Thursday, and corn rallied by nearly 5%, after the U

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Wheat rose to the highest price since May on Thursday, and corn rallied by nearly 5%, after the U.S. Department of Agriculture lowered its 2021/2022 U.S. supply and yield forecasts for both commodities. "Anticipated excess U.S. corn and wheat supplies continue trending lower over time. Today's report "confirms that corn, wheat and soybean balance sheets will remain tight at least through this year's growing season, which is a big change from the abundant grain market surpluses seen for much of the last decade." The USDA forecasts U.S. all wheat production at 1697 billion bushels, down 49 million bushels from the previous forecast. It also reduced its global wheat supply forecast to 1.0657 billion tons, down 16.8 million tons from its previous forecast, citing lower production for Russia, Canada and the United States. The government agency also said it expects U.S. all wheat yleld at 44.5 bushels per acre - that's down 1.3 bushels from the July forecast The September wheat price was up 32 cents, or 4.4%, at $7.59 a bushel on Thursday after touching a high at $7.62. Prices haven't traded at levels this high since the first half of May. Wheat prices have strengthened "due to the big drought in the Dakotas and Central Canada. South Dakota reportedly hit 100% drought conditions this week on the drought monitor. The USDA also cut its 2021/2022 forecast for U.S. corn production to 14.8 billion bushels, down 415 million from the July forecast "The season's first survey-based corn yleld forecast, at 174.6 bushels per acre, is 4.9 bushels below last month's trend-based projection," the USDA's World Agricultural Supply and Demand Estimates report said. It expects record-high corn yields in Illinois, Indiana and Ohio, but said yields in Minnesota and South Dakota are forecast below a year ago. The December corn price traded at $5.84 % a bushel, up 25 cents, or 4.5%. For the week, corn prices trade around 4.8% higher, on track for a monthly rise of nearly 7% Soybean also edged higher Thursday, with the November price up 14 cents, or 1% at $13.54 a bushel. The USDA forecast 2021/2022 U.S. soybean production at 4.34 billion bushels, down 66 million bushels from the previous forecast, citing lower soybean ylelds. a. Identify the market structure for corn, wheat and soybean in the above article. Justify the reasons for such a structure to arise. [5 marks] b. Determine and comment on the supply curve and market power of firms that belong to the market structure in part (a). [4 marks] c. Distinguish the demand elasticity between firms that belong to the market structure in part (a) and firms that belong to the other market structures. Provide justification for each structure [8 marks] d. Discuss specifically on the efficiency of the market structure in part (a) (a diagram is not needed here). [4 marks] e. Determine with justification the type of long run profit made by similar firms in the market structure in part (a). [4 marks) f. A government will typically impose a price floor in the agriculture sector. Justify two reasons for this type of government intervention.