You need to understand these three factors when pricing grain

摘要

IT is always important to be thinking towards the future when planning your grain sales. Following is a refresher to the components of pricing that you need to know in order to have an effective marketing strategy.The wheat price in Australia is comprised of three components:Futures;Currency/foreign exchange; and,Basis.The first component of an Australian grain price is the futures price. A futures contract is an agreement to buy (or sell) an asset such as a commodity at a predetermined date and price. In general, in Australia when people talk about basis they are referring to the difference between our price and the Chicago wheat futures. The market generally uses this contract as it the world's largest wheat market giving access to a high level of liquidity.