Which of the following scenarios would most likely STRENGTHEN corn basis for a community?

A local feedlot shuts down

The world price of corn and the local price of corn rise by the same amount.

A new ethanol plant opens

Transportation in an area is shut down due to bad weather

A farmer signed a HTA contract when cash prices were $5.00 and futures prices were $4.90.

By the time of delivery, were cash price was $5.15, futures prices were $5.00.

What cash price did this farmer receive?

4.90

5.05

5.15

An elevator looking to purchase wheat from farmers hedges in wheat futures. They enter at $5.75 and exit at $5.85.

If they end up paying a cash price of $5.50 for the actual wheat from farmers, find their net price.

5.40

5.50

5.60

5.75

Jolene is a soybean farmer who hedged 2 futures contracts. The initial margin per contract is $2,000 and the maintenance margin is $1,800 per contract.

She entered the futures market at a price of $13.50. By the end of the day, the price fell to $13.45. Find the total amount in her margin account at the end of the day.