Grain IQ podcast explains concept of basis, applies it to marketing plan

Grain IQ podcast explains concept of basis, applies it to marketing plan
May 12th, 2022 | RRN Staff

An important piece in the grain marketing puzzle is understanding basis.

Basis is the difference between the cash price and the futures price. Local buyers set their own prices for grain, and the basis is the difference between the local cash price and the futures price.

A negative basis typically indicates the local market has a sufficient supply of the commodity and therefore isn’t looking to buy. On the flip side, a positive basis typically indicates the local market wants to buy the commodity. 
In the latest episode of Grain IQ, Heartland Farm Partners President Jeff Peterson explores the concept of basis, what influences basis, and how basis impacts a producer’s grain marketing plan.

Grain IQ is a production of the Nebraska Rural Radio Association, in cooperation and with support from the Nebraska Soybean Board.

Listen to Grain IQ on SpotifyApple PodcastsYouTube or ruralradionetwork.com.

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