Understanding Risk in Basis Contracts
Robert Wisner and Chad Hart ( October, 2017 )
Summary
Basis contracts are marketing instruments that establish the basis (the difference between the local cash price and futures price) used to determine the price paid for grain or soybeans at a later time. Basis contracts let a producer lock in a basis that he or she believes is more favorable than one that will exist later.
Details
| Organization | Iowa State University Extension |
| Publisher | Iowa State University |
| Publication Date | October, 2017 |
| Publication Views | 1705 |
| Material Type | Written Material |
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