January $20{?}^{th}$ : Miller needs to buy wheat in late April. Currently, the May wheat futures are trading at $$6\mathrm{.}67.$ The expected basis is $-$$$0\mathrm{.}30.$

Does the miller have a long or short cash position?

Does the miller have a long or short futures position?

To hedge: The miller will $($buy$/$sell$)$ May wheat futures at $$\frac{6\mathrm{.}67}{b}u**$ What is the expected price?

$Apri{l}_{{?}^{?}}(th$: $)={?}^{\text{:}}$

The miller must $($buy$/$sell$)$ wheat locally in the cash market at $$\frac{7\mathrm{.}89}{?}$ bu$.-$ To offset their future position, they mus$1($buy$/$sell$)$ May futures at $$\frac{8\mathrm{.}04}{b}u.$

What is the actual basis?

What is the realized price for the producer?

Method $1$:

Method $2$:

The hedge resulted in a realized price of