iGrow reports Cash & Basis summaries by region in South Dakota. Scroll down to the region of interest and click on the map for corn, soybean and wheat price and basis trend information. To view a full screen version or to download a copy, click the icon in the lower right hand corner of the frame of the selected region.
Developing a successful marketing plan for commodities requires an understanding of basis. Basis is a cash price minus a futures price. South Dakota cash prices for grains and oilseeds are typically lower than futures prices. Therefore, basis values in South Dakota are usually a negative number.
Basis has several components such as transportation costs, storage costs, profit margins for sellers, quality variations from those listed in the futures contract specifications, and local market conditions. The components are deducted from or added to a futures price to arrive at a locally offered cash price.
Basis is critical for understanding any hedging strategy, evaluating cash contracts, and evaluating cash prices offered at a point in time. Basis has seasonal patterns that can be used to develop strategies for selling or holding crops.
Cash prices are separated by region and a simple average price is then calculated for each specific region. The basis is calculated by subtracting the closing price of the nearby futures contract from the average cash price for each region.
Aurora, Beadle, Brule, Buffalo, Hand, Hughes, Hyde, Jerauld, Sully
East Central Region
Brookings, Davison, Hanson, Kingsbury, Lake, McCook, Miner, Minnehaha, Sanborn
North Central Region
Brown, Campbell, Edmunds, Faulk, McPherson, Potter, Spink, Walworth
Clark, Codington, Day, Deuel, Grant, Hamlin, Marshall, Roberts
South Central Region
Gregory, Lyman, Jones, Mellette, Todd, Tripp
Bon Homme, Charles Mix, Clay, Douglas, Hutchinson, Lincoln, Turner, Union, Yankton
Source: SDSU iGrow