Step 1: The correct cast position for a forearm fracture is chosen by the level of the break, because the deforming muscle forces differ along the radius and ulna.
Step 2: In a fracture of the proximal third, the proximal fragment is pulled into supination by the biceps and supinator muscles. The plaster must therefore place the whole forearm in supination so the lower fragment lines up with the upper one.
Step 3: The rule descends down the forearm: middle third fractures are casted in mid pronation and distal third fractures in full pronation. So for the proximal forearm the answer is the supinated position.
\[\boxed{\text{Supinated position}}\]