| Table 3. Intra Crop-Year Spread:
Hypothetical Example for Corn |
| |
December
|
March
|
May
|
July
|
Sept.
|
| (1) Harvest (October) |
$2.50
|
$2.55
|
$2.62
|
$2.70
|
$2.65
|
| (2) December (Nearby) - Deferred Spreads |
|
+$0.05
|
+$0.12
|
+$0.20
|
+$0.15
|
| (3) Harvest Basis |
-$0.15
|
NA
|
NA
|
NA
|
NA
|
| (4) Expected Basis in Deferred Months |
NA
|
-$0.05
|
$0.00
|
+$0.05
|
-$0.05
|
| (5) Local Basis Improvement between
December & Deferred Months ( 3 - 4 ) |
NA
|
+$0.10
|
+$0.15
|
+$0.20
|
+$0.10
|
| (6) Basis Improvement plus spread ( 5 +
2 ) |
NA
|
+$0.15
|
+$0.27
|
+$0.40
|
+$0.25
|