Today you want to price 100,000 bu of your soybeans for delivery in November. Historically, your local basis is around -$0.40/bu in November. You check the futures market and see that the futures price for November delivery is trading at $11.40/bu today. Then you call your local grain elevator and the manager offers you to contracts with the following specifications: (1) Hedge-to-arrive contract: 5% advance payment, $0.03/bu service fee. (2) Basis contract: basis set at -$0.50/bu, 35% advance payment, no service fee. You know that you will need some cash during the summer and early fall to pay bills, so you need to raise some funds before harvest. Further, you believe that the futures price will start decreasing as we approach harvest, but your local basis will narrow compared to its historical level. Based on all the information above, discuss in detail which of these two contracts you would choose to price your grain today.