Discuss which market model appears to best explain the behavior described:
Corn prices reached record highs in the United States in August 2012, given the worst drought in decades. However, by October these prices started to drop again as countries including China, Japan, and South Korea began to purchase from producers in other countries such as Argentina and Brazil.
13 Andrew Johnon Jr., “Weak Exports Hurt Corn,” Wall Street Journal (Online), November 2, 2012.
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