In December, the manager of a factory that produces General Mills cereal makes plans to purchase 20,000 bushels of corn on April 15th of the following year. The May futures price for corn is $6.16 per bushel and the mid-April basis in the local cash market is usually 10 cents over.
1. According to the given information, what price per bushel does the factory manager expect to pay?


2. If the manager wishes to purchase May corn futures to hedge against price increases, how many contracts should they purchase?