Basis

{
  "id": "MLC-T-IND-006784",
  "term": "Basis",
  "field": "Industrial and trades",
  "definition": "The difference between the local cash price of a commodity and the price of a specific futures contract for that commodity. It reflects local supply and demand conditions, transportation costs, and storage expenses. A strong basis indicates a higher local cash price relative to the futures price.",
  "subject": "Agricultural equipment",
  "references": [
    "An introduction to basis (University of Missouri Extension)"
  ],
  "translations": {
    "de": "Basis",
    "es": "base",
    "fr": "base"
  },
  "url": "https://mlchart.com/terminology/industrial/basis/"
}