The factors that affect the basis do not include personnel price difference and quality price difference.

The basis is the difference between the spot price and the futures price of a specific commodity at a specific time and place. It is calculated as the spot price minus the futures price. If the spot price is lower than the futures price, the basis is negative; if the spot price is higher than the futures price, the basis is positive.

The connotation of basis is determined by the price difference composed of transportation costs and holding costs between the spot market and the futures market. In other words, the basis contains two components: "time and space", and transportation costs reflect the time factor between the spot market and the futures market. That is, the holding cost between two different delivery months, which reflects the holding cost or the cost of saving a commodity from one period to another, including storage space, interest and insurance premiums. Storage costs are the actual expenses paid for storing goods, which generally vary with time and region; interest is the capital cost required to store goods, and interest costs will change with the increase in interest rates; insurance costs are the costs of storing goods for insurance. The portion of the basis that reflects holding costs changes over time; the longer the time period, the greater the holding costs. Since futures contracts are only deliverable, the seller should deliver the goods to the buyer after expiration.