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Why grain prices at your farm don't match global markets
Basis measures the gap between local grain prices and global futures values in Australian dollars, shaped by freight, demand and supply.
Growers often see wheat futures surge but their local bid barely moves. That's because basis differs from futures.
Local price equals global futures value plus local factors: freight, handling, supply, demand and location. A grower inland faces different basis than one by a port, so the same futures mean different cheques.
Understanding basis helps growers judge when their local market truly offers good value.
Why it mattersA strong global futures market doesn't guarantee a good local price. Understanding basis helps you know when to sell.
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