January 20th: Miller needs to buy wheat in late April. Currently, the May wheat futures are trading at $4.95. The expected basis is -$0.25.

(Hedging)

January 20th : Miller needs to buy wheat in late April. Currently, the May wheat futures are trading at $4.95. The expected basis is $0.25. - 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 $4.95/ bu. - What is the expected price