FarmLead’s Basis Negotiation feature enables buyers and sellers to trade grain through basis contracts.
Sellers benefit from the increased price transparency and knowledge of changes in the cash and basis markets. Giving both the basis and cash contract options, along with current option to negotiate different delivery periods will help farmers optimize their grain marketing plan.
The new feature benefits grain buyers by enabling them to set a cash price by adjusting their basis against a commodity’s futures price. Buyers no longer have to worry about the impact of their cash bid being ‘out of the market’ when the futures markets move up or down. By setting their basis on the FarmLead platform, their cash price will update automatically as grain futures values change. Further, buyers can decide between doing a cash contract or a basis contract with grain sellers.
The futures data provided on FarmLead comes from various sources, you can see them here.