You plan on selling 67 steer calves in January that you expect to weigh 750 pounds each. You have ovserved the following prices ($/cwt) over the last 3 years:

	Cash	CME FC	Basis
2007	$89.00	$99.00	a. ___________
2008	$94.00	$103.00	b. ___________
2009	$83.00	$94.00	c. ___________

What is your expected basis for January 2010 (3 year average)? d. ___________

Market Information 9/9/09

Current Cash 750 lb steer	$87/cwt
Jan FC Futures	$101/cwt

If you placed a hedge on 9/9/09 using Jan futures, what is your expected net sale price?

Assume that on Jan 25 you sell your feeder cattle for $85 per cwt at the local auction and that Jan. FC Futures are at $94 cwt. Show the results of a Futures hedge you placed on September 9 and offset on January 25.

----------| Date | ________|	------------------------------| Cash | _______________________|	--------------------------------|| Futures || _________________________||	-------------------------------------| Basis | _____________________________|
9-Sept | | ________|	e. | | _______________________|	g. || || _________________________||	i. | | _____________________________|
25-Jan | | ________|	f. | | _______________________|	h. || || _________________________||	j. | | _____________________________|

k. NSP = ____________