Wide Basis

[tweety]

I don't agree Braveheart, if you know based on delivery destination the majority of the fixed costs for basis, you can easily determine the 'profit' factor.

Helps with decisions.

[Braveheart]

But I don't care about their profits. They're their profits. I care about our profits.

As to delivery destination, are you saying every time you consider a bid you ask the grain co where the grain is going?

We all talk as if the basis is always futures minus, but there are times, surprisingly frequent, when your bid is futures plus. What happens to your calculations then?

I want to know the basis but the intricacies behind it are too much for me. Ocean freight, was someone's deal CIF, fx, cost of carry, volatility in underlying futures, credit terms to customer, etc., are all issues I don't want to deal with at this time.

Once I start watching someone else's profit/business instead of our own I become either vain or bitter.

[bucket]

Braveheart

See how long this lasts if the primary producer isn't making money.

In a few weeks we will find out.

See what kind of money the middleman makes when there is little production.

.

[tweety]

When its a positive basis, then you know demand is high and good time to sell.

[TOM4CWB]

When it was a positive basis in Feb/Mar 2015, I priced our HRS wheat.

[malleefarmer]

yep tweety im with you strong basis sell cash weak basis sell futures or do nothing

we had a cash price back in I think jan of $305 port for our standard wheat bais was above average and currency was weak.
Now it hnk were on $240 weak basis strong currency and weaker futures of course.
The $305 peaked at 312 about 4 days later and has been retreating ever since

[Hopperbin]

Mallet no one here can sell cash what is that? We sell on the futures price minus or plus basis. To the person who said if basis is good time is to sell. Actually that is not true. We had very poor futures price when basis was better earlier.