MRCI Basis Charts, which plot both a market's current basis level (difference between cash and a futures contract price) and its 15-year average, illustrates not only whether that current basis is higher or lower than normal but also when basis tends to widen or narrow in the future. Thus, producers and consumers have an advantage in being able to make more educated marketing decisions --- if and when to hedge their production or needs, if and when to lift those hedges, and whether to buy or sell cash or futures.
Basis Charts are available to MRCI ONLINE subscribers!
They are located at the beginning of our Special Spread Chart files.
MRCI ONLINE subscribers simply click on Email or PDF for Live Cattle.
A Sample Copy of a previous Live Cattle/Feeder Cattle Report is located here: http://www.cmegroup.com/education/interactive/moore-report/pdf/AC-167_MooreCattleFinalwDemo.pdf
(See page 83 for Sample Basis Charts.)
