CommodityBasis.com is a platform for intra-day Commodity Cash price information and a network of people involved in the Commodity Trade. We bring together price information from brokers all over the globe and remove information asymmetries. We make businesses more efficient, bring companies together and increase profitability.
Benefits of CommodityBasis.com
Remove information asymmetries to make better trading decisions
- See real time traded cash prices in ports all over the world
One point where all information comes together
- Find all the information you need quickly and in one place
Track worldwide benchmark prices and recognize arbitrage opportunities
- Analyze historical prices, trends, cycles and spreads
Contact brokers and grow your network
- Find reliable partners and create new business opportunities
Cash commodity prices are often negotiated locally and between two parties, which makes the industry notoriously un-transparent. CommodityBasis.com addressed this issue and created a hub of information. We distinguish ourselves with our focus on cash agricultural markets, our worldwide information network and the affordability of the product. By showing price changes intraday we make physical soft commodity markets function in the most efficient way possible. Agriculture holds a crucial role in society and we see ourselves as another step in modernizing the value chain.
CommodityBasis.com is a partnership of brokers located all over the world.
The brokers bring a vast amount of local and global expertise and an enormous first and second tier network. We work together with brokers of the highest reputation and with the best track record. This diversity of knowledge gives our network its distinctive cross-border, cross-disciplinary character. We take pride in the decades of experience of our individual partners and the powerhouse of knowledge that we have created.
We are dedicated to make sure that our prices are accurate 100% of the time. Prices are crosschecked on accuracy by our computer systems as well as through random manual checks. Aside from price accuracy and completeness it is important that the prices mean something; that they can be standardized and can be compared with one another. We designed a framework with which prices can be compared across regions. We commoditize the products as much as possible by working according to strict international rules and quality specifications.
Commodities on CommodityBasis.com:
Are traded under known international contracts (FOSFA, GAFTA, etc.);
- With standardized quality norms and bonifications.
Are internationally traded bulk products;
- Only truly commoditized products, no low volume specialty products.
Come from reputable companies;
- Our partners are verified and have access to the latest prices.
On CommodityBasis.com we show prices of cash commodities worldwide.
Cash commodities are actual physical commodities that are delivered at the completion of a contract. Often (but not always) standardized for quality according to international contracts, the two parties are free to choose their specific quantity, delivery time/terms and delivery location. Because cash contracts are specific between two parties these contracts are difficult or sometimes impossible to sell onwards.
In contrast to cash commodity contracts there are futures contracts. Futures contracts are financial products that are standardized for quality, quantity, delivery time/terms and location. Because of this standardization the market is very liquid and contracts are traded onwards often and easily. These contracts represent the underlying value of the commodity but physical delivery is taken on less than 1 percent of all the contracts traded. Because futures markets are so liquid, they are ideal for hedging the risk that comes from a physical position.
Basis trading is a strategy used by people that trade physical commodities. The basis is defined as the difference between the cash price in the local market and the exchange traded futures price of the same commodity. The difference between the cash price and the futures price exists because of the difference between global and local circumstances such as S&D’s, weather, politics and economics. Traders in the physical market want to hedge their flat price position because local factors are easier to predict than global factors. When hedging the flat price position the position the trader is left with is a basis position. For hedging a flat price position (or trading the Basis) the futures market is needed to provide liquidity.
There are two ways to trade the Basis; you can go long the Basis or short the Basis. When a trader buys cash grains and hedges this with selling an equal amount of grain on the futures market the trader is long the basis. Equivalently if a trader sells grains and offsets this trade with the purchase of grain futures the crusher is short the basis. The trader takes a position on what he thinks the local market is going to do compared to the futures market. When the trader offsets his long the basis position; selling his cash grain and buying back his futures, the difference is what the spread has done between his cash and his future position and this will be his trading profit or loss. Or in other words how local prices behaved compared to global prices.
CommodityBasis.com allows its members to track the development of Basis levels in their area and around the world. With this we make local markets more international and easier to understand and analyze.
Founded in Rotterdam, the Netherlands but connected through partners all over the world. Our mission is to take away all physical and perceived borders and give agribusinesses a platform to find and exchange information. We want to be the leading platform for soft commodity price information and change the agribusiness for the better. We will continue to work together closely with our partners to always have an answer to the needs of the market.
Members of our platform come from all parts of the business and consist among others of Traders, Brokers, Crushers, Shippers and Farmers. Our members have different reasons for using our portal but all see the value in being part of the most comprehensive price platform on the market. CommodityBasis.com facilitates the sophisticated information and communication network needed to bring the harvest to the household and serve the planets’ most vital needs.