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    An Introduction to Basis

    Joe Parcell and, Jason Franken (August, 2011)

    Commodity basis provides a significant amount of information to agricultural producers and agribusinesses for making production, forward pricing, hedging and storage decisions. Basis tends to follow historical and seasonal patterns, and by understanding these patterns, a producer or agribusiness person can make better management decisions and reduce risks involved in those decisions. Many persons believe that understanding basis patterns is the most fundamental means of evaluating marketing decisions. This guide provides an overview of commodity basis and explains the different ways it applies to crops and livestock.

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    University of Missouri Extension
    University of Missouri
    August, 2011
    Material Type
    Written Material