One price does not fit every location
Futures contracts provide a common reference, but farms sell into local markets. Basis describes the difference between a local cash price and the relevant futures contract. It can reflect nearby supply, processor needs, transportation, quality, and timing.
That means a national market headline cannot explain every local bid. Compare the same delivery period, grade, and contract month, then ask what is driving local conditions.
Keep a record of bids
Saving elevator bids over time can reveal seasonal patterns and help a farm compare delivery choices. Include storage costs, shrink, hauling distance, and cash-flow needs in the comparison.
Basis tracking is an educational tool, not a recommendation to buy or sell. Consult a qualified adviser for decisions specific to your operation.