# Basis shows quality wheat pays

> An Oklahoma State University analysis explains that wheat value is set by the KC futures contract plus or minus the local basis. The December KC contract was $5.30 and the Burlington, Oklahoma basis was minus 10 cents, with protein levels well above average. The article says quality factors drive basis more than transport costs.

- Date: 2018-09-06 · published 2018-09-06T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/63076-basis-shows-quality-wheat-pays
- Commodities: [Wheat (HRW)](https://feedsoft.ai/c/KWHEAT.md)

## Why it matters

Protein and quality premiums move wheat's cash value for feed and milling buyers, so basis matters as much as the futures price.

## Read by commodity

- KWHEAT: neutral

## Sources

- farmprogress.com: https://www.farmprogress.com/wheat/basis-shows-quality-wheat-pays

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.