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Suppose on 11/15/23 the Mar 2024 soybean basis in Champaign, IL, is -0.45 cents/bu. This means that: the quality component of the basis is zero
Suppose on 11/15/23 the Mar 2024 soybean basis in Champaign, IL, is -0.45 cents/bu. This means that: the quality component of the basis is zero given the high quality corn grown in Champaign County, IL O cash is greater than futures by 0.45 cents/bu., representing an inverted market. O the market determined price of storage is negative, suggesting no incentive to store the commodity. O cash is less than futures by 0.45 cents/bu., representing a positive carry market
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