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1. www.agweb.com › markets › grain-marketsUnderstand The Basics of Basis - AgWeb

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   Sep 15, 2021 · Basis is simply the difference between local cash prices and the futures price at the CME. To start your analysis, collect basis for each of your delivery locations at least once a week. “Over ...

   • Author: Sara Schafer

   • Email: sschafer@farmjournal.com

2. www.alberta.ca › basis-how-cash-grain-prices-areBasis – How cash grain prices are established | Alberta.ca

   www.alberta.ca › basis-how-cash-grain-prices-are

   Basis is the difference between a local cash (or street) price and the futures market price for that commodity. Basis is calculated as cash price minus futures price. Basis for storable products like grain is influenced by the: cost of getting grain from a local delivery point to the point of use, or delivery locations of the related futures ...

3. www.canr.msu.edu › E3416_Intro_Grain_Mkt_AAIntroduction to Grain Marketing - College of Agriculture and ...

   www.canr.msu.edu › E3416_Intro_Grain_Mkt_AA

   It includes a review of the commodity futures market and the ways it influences the price you receive for your grain. It explains how and when to use pricing tools. Additionally, it focuses on marketing plans, including ways to develop a pre-harvest and post-harvest plan to fit your specific farm needs.

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4. www.manitobacooperator.ca › markets › understandingUnderstanding basis one of the basics of grain marketing

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   Meanwhile, the canola basis range has been as high as $58/tonne to as low as $23/tonne, with an average of $38/tonne. Basis fluctuations have averaged 38 per cent of the underlying canola futures changes in the past few years meaning basis moves by over a third of outright futures prices. Clearly it’s worth paying attention to basis levels.

5. www.agfinity.com › blog › understanding-grain-pricesUnderstanding Grain Prices: How to Maximize ... - Agfinity Inc.

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   May 22, 2024 · Here’s how to get the most value from your grain broker: 1. Market-Driven Prices. Prices are driven by the market, not by grain brokers. We don’t set prices; we have no control over them. The market is influenced by you, the buyer, economic conditions, weather, supply and demand, and global trade. Importantly, we don’t earn a commission ...

6. www.extension.iastate.edu › agdm › cropsCrop Price Hedging Basics | Ag Decision Maker

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   Hedging is defined as taking equal but opposite positions in the cash and futures market. For example, assume a producer who has harvested 10,000 bushels of corn and placed it in storage in a grain bin. By selling 10,000 bushels of corn futures the producer is in a hedged position. In this example, the producer is long (owns) 10,000 bushels of ...

7. People also ask

   What is basis & how does it affect grain prices?

   • Basis reflects both the cost of marketing grain as well as the competition between grain buyers, and does not change as often as do futures prices. Farmers should watch both basis trends as well as cash and futures market price trends to select the time to price their grain.

   Basis – How cash grain prices are established - Alberta.ca

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   Why would a grain price drop if basis is too weak?

   • Refusing to sell grain because basis is considered $5 per tonne too weak could mean a lower cash price at a later date due to a much larger than $5 per tonne drop in futures prices. Read Using hedging to protect farm product prices for an explanation of hedging using the futures market.

   Basis – How cash grain prices are established - Alberta.ca

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   How is grain sold on the futures market?

   • Your farm’s grain isn’t sold on the futures market, but at a local (domestic) price to a nearby cash market (grain elevators). The local price is called the cash price. This is the value agreed upon for immediate delivery of your grain or for accepting the current price for grain delivered earlier but not sold.

   Introduction to Grain Marketing - College of Agriculture and Natural

   www.canr.msu.edu/farm_management/uploads/files/E3416_Intro_Grain_Mkt_AA.pdf

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   Why is cash grain a higher price?

   • The loss in value of the cash grain will be less than the gain in the futures market resulting in a higher net price. Basis usually narrows from harvest into the winter, spring and summer; resulting in a higher price. However, a higher price is needed due to the cost of storing grain past harvest.

   Crop Price Hedging Basics | Ag Decision Maker - Iowa State University

   www.extension.iastate.edu/agdm/crops/html/a2-60.html

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   How do grain producers make money?

   • As a grain producer, you start out having already taken a position within the cash market by producing your crop. The cost of production not only establishes a minimum price to market, but also establishes the price you’ve paid to own the bushels. The opposite position would be to sell on the futures market.

   Introduction to Grain Marketing - College of Agriculture and Natural

   www.canr.msu.edu/farm_management/uploads/files/E3416_Intro_Grain_Mkt_AA.pdf

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   Should farmers sell grain if basis is too weak?

   • Farmers should watch both basis trends as well as cash and futures market price trends to select the time to price their grain. Refusing to sell grain because basis is considered $5 per tonne too weak could mean a lower cash price at a later date due to a much larger than $5 per tonne drop in futures prices.

   Basis – How cash grain prices are established - Alberta.ca

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8. www.cmegroup.com › learn-about-basis-grainsLearn about Basis: Grains - CME Group

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   1 day ago · The July Wheat futures price is $6.50 per bushel, and the cash price in his local area in mid-June is normally around 35 cents under the July futures price. With a basis of 35 cents under, the approximate price this producer is trying to establish by hedging is $6.15 per bushel, which is the futures price of $6.50 minus the expected basis.