Livestock Basis

Date of Publication
December 7, 2021
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Knowledge of historical basis patterns can be useful when estimating expected sale or purchase prices at the conclusion of a futures or options hedge, when evaluating a current cash market quote, and when forecasting cash prices. This publication explains how livestock basis is computed, outlines an approach to developing a history of local basis levels, and discusses how historical basis data can be used to forecast basis. (4 pages).

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