Scenario #2: lower futures prices

Date	Cash	Futures	Basis
April	You have a chance to lock in a profitable price for soybeans at harvest.	Sell 5 contracts of November soybean futures to lock in a profitable selling price at harvest. Futures price: $11.10	Expected harvest basis is $0.65X, or 65 cents under the November contract. Expected harvest price is $10.45/bu.
October (harvest)	Sell 25,000 bushels of soybeans to the local elevator for $8.75/bu.	Lift the hedge buy back November soybean future at $9.30/bu.	What is the harvest basis? _____________________
Results	What did you receive in the cash market? $/bu. _____________ $total _____________	What was your gain or loss in the futures market? $/bu. _____________ $total ____________	What final price did you receive for your soybeans? $/bu. _____________ $total _____________