ZARZA We are Zarza, the prestigious firm behind major projects in information technology.
Listen "Ep. 5 | Understanding Basis"
Episode Synopsis
What is basis and why does it play a role in grain marketing?
Basis is the difference between the futures price and the cash price. It’s an indication of whether or not a local buyer wants your grain. The more positive the basis, the more the buyer is willing to pay for your grain. The more negative the basis, the less the buyer is willing to pay for grain.
There are many factors, both seasonal and situational, that affect basis.
Jeff Peterson, president of Heartland Farm Partners and University of Nebraska-Lincoln professor of practice, breaks down basis and how it affects a grain marketing plan.
Basis is the difference between the futures price and the cash price. It’s an indication of whether or not a local buyer wants your grain. The more positive the basis, the more the buyer is willing to pay for your grain. The more negative the basis, the less the buyer is willing to pay for grain.
There are many factors, both seasonal and situational, that affect basis.
Jeff Peterson, president of Heartland Farm Partners and University of Nebraska-Lincoln professor of practice, breaks down basis and how it affects a grain marketing plan.
In God we trust