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B. Wheat Production Hedge situation: (a) It is September 15,2022 and you are considering planting wheat in October 2022 with an expected harvest of 11,000

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B. Wheat Production Hedge situation: (a) It is September 15,2022 and you are considering planting wheat in October 2022 with an expected harvest of 11,000 bushels. July ' 23 wheat futures are quoted at $7.58/bu on September 15. One contract is 5,000 bushels. Your historic basis is 10 cents over (0.10) July futures at harvest. (b) It is now June 15th,2023, you harvest 9,876 bushels of wheat and sell at your local elevator. Cash price is $8.42/bu, and July futures is quoted at $8.32/bu. Requirements: (a) On September 15,2022 you hedge one contract of July ' 23 wheat futures. (b) On June 15, offset the hedge and determine the net hedged selling price for the 15,843 bushels of wheat in $/ bushels. Quertion: 1. What is your expected net price for the hedged wheat on September 15, 2022? 2. What is the net hedged seiling price you recelved for the 9,876 bushels of harvested wheat? 3. By how much did you miss your expected net price and why? B. Wheat Production Hedge situation: (a) It is September 15,2022 and you are considering planting wheat in October 2022 with an expected harvest of 11,000 bushels. July ' 23 wheat futures are quoted at $7.58/bu on September 15. One contract is 5,000 bushels. Your historic basis is 10 cents over (0.10) July futures at harvest. (b) It is now June 15th,2023, you harvest 9,876 bushels of wheat and sell at your local elevator. Cash price is $8.42/bu, and July futures is quoted at $8.32/bu. Requirements: (a) On September 15,2022 you hedge one contract of July ' 23 wheat futures. (b) On June 15, offset the hedge and determine the net hedged selling price for the 15,843 bushels of wheat in $/ bushels. Quertion: 1. What is your expected net price for the hedged wheat on September 15, 2022? 2. What is the net hedged seiling price you recelved for the 9,876 bushels of harvested wheat? 3. By how much did you miss your expected net price and why

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