basis report provides a spatial analysis of crop basis in the Great Plains
Region: Kansas, Nebraska, Missouri, Oklahoma, and parts of Colorado and
Texas. Basis is calculated by subtracting the nearby futures price from the
cash price, where nearby is defined as the futures contract closest to
expiration without going into the delivery month. Basis captures the effects of local supply and demand, as well as
transportation costs, on commodity prices.
in this report are
created from cash and futures prices that are collected and analyzed on each Wednesday of each month. The basis maps in this report show current basis
levels for soybeans, corn, wheat, and grain sorghum (grain sorghum basis is
calculated using the corn futures market). The basis deviation maps
show the difference between the current basis and the three-year historical
average basis for the same week and location.
Cash price data were collected for 500-900 locations, depending on the
crop, and the information was analyzed in a Geographic Information System
(GIS). Inverse distance methods were used to estimate the change in
basis over space, which provides an estimate of the basis for observed and
unobserved locations. A flag on the map denotes a location where
cash prices were available. Care should be taken in interpreting
basis estimates in portions of the Great Plains region where few or no
cash prices were available.