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| For every location that takes grain there is a basis tacked on to the futures price. Right now all the local ethanol and crush plants and elevators around here have a positive basis for cash sales.
I know that the basis has to do with what it costs to move grain to the ethanol plants or terminals and for those plants to process grain, but WHO sets that basis and how is the number ? Is there a formula they use based on distance and fuel costs and whatever? | |
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Who physically sets a basis?
