May $20$th: Producer plans to sell corn in early November. Currently the December corn

futures are trading at $$4\mathrm{.}33.$ The expected basis is $-$$$0\mathrm{.}36.$

$$ Does the producer have a long or short cash position? $\_\_\_\_\_\_\_\_\_\_\_$

$$ To hedge: The producer will $\_\_\_\_\_\_\_\_\_\_\_($buy$/$sell$)$ Dec corn futures at $$4\mathrm{.}33/$bu$.$

$$ What is the expected price? $\_\_\_\_\_\_\_\_\_\_\_$

Nov. $10$th:

$$ The producer must $\_\_\_\_\_\_\_\_\_\_\_($buy$/$sell$)$ corn locally in the cash market at

$$4\mathrm{.}18/$bu$.$

$$ To offset their future position, they must $\_\_\_\_\_\_\_\_\_\_\_($buy$/$sell$)$ Dec futures at

$$4\mathrm{.}67/$bu$.$

$$ What is the actual basis? $\_\_\_\_\_\_\_\_\_\_\_$

$$ What is the realized price for the producer?

o Method $1$:

o Method $2$:

o The hedge resulted in a realized price of $\_\_\_\_\_\_\_\_\_\_\_.$