BeefBasis 101

Effective risk management requires knowledge of the relationship between local cash market prices and futures market prices, known as the basis. helps cattle producers to more accurately, and more easily, project basis for a specific set of cattle than they have been able to do in the past. More accurate basis forecasts means cattle producers will be able to more accurately assess pricing opportunities afforded them by the futures market, and this in turn means they will be able to manage market risk more effectively.