Understanding Basis

Instructional time 2-4 hours; multimedia time: 33 minutes

This course will help you learn how to use basis an futures to make cash price projections ... how to set minimum and maximum prices for commodities, and how to understand basis as an alternative to price risk.

Click here to view a sample "slide" from the CDRom

Outline, objectives & contents

• Chapter 1
  • Learning Objectives
    • Define Basis
    • Calculate Basis for specific situations
    • Understand the impact of commodity type and location on basis
      
  • Contents
    • Defining Basis
    • The Right Cash and Futures Price
    • Commodity and Location Specific
    • Summary
    • Quiz
      
      
• Chapter 2
  • Learning Objectives
    • Learn how to use basis to estimate expected hedge prices and minimum and maximum prices
    • Determining the appropriate market strategies
    • Determining your load requirements for hedging
  • Contents
    • Using Basis for Price Projection
    • Calculating a Hedge Price
    • Financing Your Hedge
    • Estimating Your Loan Requirements
    • Using Basis to Calculate Minimum and Maximum Prices
    • Using Basis to Compare Prices
    • Assuming Basis Risk with Hedging
    • Using Basis to Time Sales
    • A Storage Example
    • Understanding Basis Signals
    • Selecting Marketing Strategies
    • Summary
    • Quiz
      
      
• Chapter 3
• Learning Objectives
  • What is basis risk
  • How to measure basis risk
  • Comparing the basis risk to the price risk
• Contents
  • Predicting Basis Risk
  • Measuring Basis Risk
  • Basis Risk vs Price Risk
  • Summary
  • Quiz
    
    
• Conclusion
  • Summary
  • Quiz
  • Conclusion