Error

In the United States, the pricing method of the agricultural product spot market, the hedging operation method, the EFP transaction in the futures market, and the determination of final delivery are all Forecasts and decisions are made based on the basis. Similarly, to do a good job in basis trade, both parties to the transaction, especially the basis seller, must carefully study the changing rules of basis between the spot and futures commodities involved. This is crucial to the selection of hedging opportunities for the basis seller in basis trading, the formulation of the buyer's pricing strategy, and the negotiation of premiums and discounts between buyers and sellers. Therefore, it is crucial to master basis research methods and find the rules of basis changes from a large amount of historical data as a theoretical basis to guide basis trading.