October 15th: A producer plans to sell wheat in early July; currently, July wheat futures are trading at 780'0. The expected basis is $0.60 under. . Does the producer have a long or short cash position? . Does the producer have a long or short futures position? . To hedge: The producer will (buy/sell) July wheat futures at 780'0 per bushel. . What is the expected cash price? July 1s: . The producer must (buy/sell) wheat locally in the cash market at 724'0 per bushel. . To offset their future position, they must (buy/sell) July futures at 779'0 per bushel. . What is the actual basis? o Was the basis stronger, weaker, or the same as expected? What is the realized price for the producer