If I'm understanding you correctly its the elevators profit margin for handling, storing and marketing. If there is high demand locally (i.e. ethanol plant) then the basis is very low. If they have to cover the cost for it to ride a barge all the way to New Orleans then the basis is high.
again, thanks
oh, by the way, did you guys know that the gov't still pay people NOT to grow grains. I receive approx. $600/year for corn and approx. $75/year for wheat. Actually i could grow as much as I want, but I'm not allowed to SELL any of it. Good thing I'm in the cattle market (I do grow corn to feed them)
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