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Nebraska Cash Corn Prices And Basis Patterns, Jessica J. Johnson, Cory Walters

Department of Agricultural Economics: Faculty Publications

Local cash grain prices can be broken down into two components, futures and basis.1 The futures portion is determined by buyers and sellers of futures contracts, which often represents factors influencing global supply and demand. The basis portion represents factors influencing the local elevator. For any grain marketing decision, sale or purchase, there is a corresponding basis. Understanding the forces driving basis and how to maximize returns from basis is central to making informed grain marketing decisions. The purpose of this publication is to provide an understanding of how basis works for a primary commodity grown in Nebraska, aimed at …