WebMay 8, 2012 · To analyze basis for a particular grain, you need to know the grain’s basis history. For canola, basis levels range from a weak minus $50 (that is, a cash price $50 per tonne less than the futures price) to a strong plus $10 (a … WebThis is because the basis is 35 cents rather than 30 cents. In both examples, the futures price is locked-in at $3.00, but the basis is not established until the cash grain is sold. Thus, corn hedgers still face the risk of basis change, and the actual net price will not be known until the actual basis is known.

The Basics of Grain Basis Trading

WebDec 11, 2024 · Iowa State University Extension grain marketing economist Chad Hart discussed the use of basis contracts at a recent grain management and marketing meeting. “Typically, when there is a cash … porter houston

Grain Marketing Methods: A Guide from ADM - ADM Advantage

WebSep 7, 2024 · One such resource for marketing education is a book by University of Minnesota grain marketing specialist Edward Usset titled Grain Marketing Is Simple … WebGrain Marketing is a Long Term and In-depth Endeavor One of the advantages of applying an objective, coherent, and emotionless marketing plan based on the cash price is that it … WebFor grain, basis is typically used to indicate current local demand. Thus, basis varies by location depending on the regional supply and demand (Figure 2). Weak basis (i.e., … porter hustler locomotive