Grain basis Texas AM University粮食基础德克萨斯一所大学.pptVIP

Knowing and Managing a Grain Basis Grain Basis Basis = Cash – Futures Price Characteristics of Basis Less volatile than futures or cash price Basis can be positive or negative Basis has seasonal trends Factors that Determine Basis Transportation costs Local supply and demand conditions Quality variation from underlying futures contract specifications Availability of substitutes Knowledge of Basis Information is Critical Evaluating forward pricing opportunities Evaluating grain storage decisions Trends in Grain Basis Basis tends to be “wider” in the months prior to contract expir