You are expecting that your small farm will be quite productive this year. From your 1,500 acres, it looks like you will be able to deliver 60,000 bushels of wheat this coming September. Today, which is June 15th, you attempt to hedge your position by selling futures contracts at the day's final (settle) price on half of your expected delivery volume. Assume that the market price turns out to be 495.5 cents per bushel (bu.) at the time you make your delivery in September. How much more or less would you have earned if you had not bought the futures contracts? Wheat - 5,000 bu.: cents per bu.

September

Open 491, High 492.5, Low 486, Settle 487.5, Previous settle 490