Basis: The Cash/Futures Price Relationship

Kevin C Dhuyvetter ( November, 1992 )

Summary

Farmers today have more marketing alternatives than in the past and face a complex marketing system. They need to compare the traditional marketing method of making a cash sale at harvest or when livestock are ready for market to forward contracting or hedging with futures or options. To do this, they need to understand the relationship between different price-quotes to be able to compare them equally in terms of time, place, and quality.

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Details

Organization

Kansas State Cooperative Research and Extension Service

Publisher

Kansas State University

Publication Views

679

Material Type

Written Material