On Aug. 15 a feed barley producer feels that $300/t is a good price to sell the remainder of the unprized feed barley he/she is about to harvest since the December feed barley futures contract is trading at $300/t on the ICE. The producer sells five (5) December futures contracts or 100t (5 X 20t = 100t) to equally offset the expected long cash position. On November 20 the local cash price is $360/t. The producer sells the feed barley for cash and buys back the futures at $365/t. What is the resulting final price realized and why is it different from the target price of $300/t?