To help Texas farmers and ranchers gain better understanding on price basis in a particular region of the state, the Texas A&M AgriLife Extension Service has an online tool available that lists the price basis for corn, cotton, sorghum, soybeans and wheat.
“Price basis is the difference between a cash price and the futures price of a particular commodity on a given futures exchange,” said Dr. Mark Welch, AgriLife Extension grains economist in College Station. “The futures price that you might be seeing may or may not necessarily reflect the actual local price you will receive. While the futures price might be up, the local basis price might be weak.”
According to AgriLife Today, price basis also is part of the curriculum offered during the annual Master Marketer program, which is set for January 2015 in Amarillo.
The online price basis tool is available here.