Posting a basis offer is similar to cash deals with a few simple tweaks to the process.

The following is a 10-step guide to listing a basis deal as a buyer.

  1. Sign into Farmlead.com and select “Post New Offer” at the top of the page.
  2. Select your grain type. If you select a grain that does not have a futures market associated with it (i.e. malt barley), then you cannot post a basis deal. Only canola, corn, oats, soybeans, and wheat can support basis contracts on FarmLead
  3. Select your contract type. You have two options: A cash contractor or a basis contract. If you want to select a basis deal, you will need to select this contract type.
  4. Determine the grade, crop year, characteristics and moisture levels you are seeking.
  5. Scroll down to determine your freight and delivery options, including the movement year, delivery points and period you are seeking to receive your grain.

The next section is the most important for basis contracts.

  1. If the user has selected a Canadian delivery location, they’ll have the option of choosing a basis type: either Default or Currency. A default basis is used when you take the absolute value of the futures value. A currency basis is used when you multiply the futures market value by the exchange rate between the country the futures market is in and that of which you’re dealing grain in.
  2. Select the futures contract on which you are setting your basis against local cash prices. The field will automatically provide the latest futures price from our data feeds in Chicago, Kansas City, Minneapolis, or Winnipeg, Canada (depending on the commodity).
  3. In the next field, you will enter your basis. This can be a positive or negative number.
  4. You will enter the quantity of grain you seek to purchase. After you enter your basis, the fields below will automatically calculate the implied cash price and the value of the grains you are seeking to purchase.
  5. Finally, select your payment terms. You have a series of options, including “Payment Upon Delivery” or within a series of days.
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