Basis

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The Basis is the difference between the cash market and the futures market price for a given commodity. The cash market is not necessarily related to the futures exchange, although it can be. In some cases, the cash price for a commodity is set by a stockyard, an over-the-counter market or even by unrelated grain elevators in an area where the commodity is produced.

To add the basis to any commodity chart, simply make a chart of the desired series, click the "Indicator" button on the toolbar, and then select "Basis."

Alternately, pull down the Chart menu, click "Study Toolbar" and then select "Basis."

CSI quotes cash prices for most, but not all commodities. If a cash price is available, the cash premium can be displayed when Basis is selected from the Study Toolbar. Lag day cash prices, which are one day delayed, are provided for some commodities. Check the footnotes of the fact sheets for information on non-standard cash price data.

If no cash price is available for a particular market, the Basis study will not be offered.