Duration: 4:15
Level: Beginner

All around the globe, market participants trade basis to the Chicago Board of Trade Soybean futures contract. Basis is the price premium or discount for the physical commodity in a specific location, relative to the futures price. It is driven by local supply and demand, as well as transportation costs between markets.

Contributed By: CME Group

Study Notes:

Original study notes from CME Group Education

 


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Disclosure: Futures Trading

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