A cash bid is more than futures
The futures board is only the starting point. Local cash bids adjust that board price for local supply and demand. That adjustment is basis.
Basis can be stronger at one buyer because they need grain, have freight access, have room, or are serving a different market.
Compare the net farm bid
The highest posted bid is not always the best farm bid. Compare after freight, delivery window, wait time, discounts, premiums, storage, and payment timing.
- A nearby buyer with a lower bid may net more after freight.
- A better basis may not matter if the delivery window does not work.
- A premium bid may require paperwork or quality terms that reduce the net.
Use GrainIQ tools together
Related explainers
Learn how basis and carry work in Grain Basis & Carry, Explained. If you are comparing store-vs-sell, start with the Grain Storage Calculator.
FAQ
Why are grain bids different at every elevator?
Each buyer has different basis, freight, space, demand, delivery windows, quality needs, and risk.
What is basis?
Basis is the local cash price minus the futures price.
How should I compare grain bids?
Compare bids after freight, delivery timing, storage, discounts, premiums, and payment terms.