Near-north Ontario, French River | Flats, I don't think you fully understand basis. Basis is NOT the margin the elevator makes. The margin the elevator makes is the difference between what the elevator paid for grain vs what it sells it for which for the most part is totally unrelated to daily basis level. Elevators are typically basis traders, they buy grain at a specific basis level ( the post price on any particular day) then hold that grain , hoping that basis levels rise over time, which is generally true. That's how a commercial elevator makes it margin. |
Explanation of Basis
