Firm A consumes significant amounts of feed grains in its business. Despite the availability of various suppliers domestically and internationally, the war in Ukraine has impacted the steadiness of grain supply and increased price uncertainty.

Firm A was advised to enter a four-month forward contract on 200,000 bushels of high-grade feed barley for a delivery price of $7 a bushel.

 

Explain the positions that Firm A should take in the forward contract if it is bearish or bullish about the underlying asset's price at the time it enters the position.