Importance of Crop Basis when Marketing Grain

Basis is an important component for crop producers to consider when marketing grain because it is used to convert the futures price to a local cash equivalent. Futures prices and basis follow different seasonal patterns so the ability to manage futures price risk and basis risk independently creates an opportunity to improve returns. Join Purdue ag economists and co-creators of the Purdue Crop Basis Tool, Nathan Thompson and Jim Mintert for an episode discussing the advantages of using the Center’s Crop Basis Tool, available for corn and soybeans in Illinois, Indiana, Michigan, and Ohio.

This episode begins a new series on crop marketing. The next episode will cover thumb rules to use when forecasting basis, released in a few weeks.

Podcast provided by Purdue University's Center for Commercial Agriculture. Find the rest of this crop marketing series and related resources at https://purdue.ag/cropmarketing. 

New! You can find the FULL video episode on our YouTube channel, Purdue Center for Commercial Agriculture. Visit https://youtu.be/tNHOQ6sazFw to subscribe and watch.