rookie looking for advice, please help!

[tommog]

PLease could one of you helpful guys teach me about basis levels? Say, for example oct Futures for bean oil is at 25.04 on CBOT, how does that have any relation to basis levels in argentina? I know this is probably a very basic question but i'm learning about commodities trading and this confuses me.

Thanks

 

[oatman]

Basis: The difference between the cash price and the futures price of a commodity. CASH - FUTURES = BASIS. Basis also is used to refer to the difference between prices at different markets or between different commodity grades.

 

[tommog]

thanks for your help