Pricing
Price Differential / Basis Calculator
Basis = physical price − benchmark. Differential = physical price − quality/freight-adjusted fair value. Use for grain, energy and metals term contracts priced 'index +/− x'.
Platts / Argus / CBOTBasis + differential
Reviewed against UCP 600 · Incoterms 2020 · WCO HSLast reviewed July 2026
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Basis vs benchmark
+$30.00
per MT
Quality/freight fair value
$803.00
per MT
Differential vs fair value
+$7.00
Overpriced
| Benchmark | $780.00 |
| + Quality adj. | -$12.00 |
| + Freight adj. | $35.00 |
| + Other | $0.00 |
| = Fair value | $803.00 |
| Contract price | $810.00 |
| Differential | +$7.00 |
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Frequently asked questions
What is basis in commodity trading?
Basis = Local Cash Price − Futures Price for the nearby contract month. A negative basis (cash below futures) is 'weak', positive is 'strong'. Traders quote physical deals as 'basis to March CBOT wheat' meaning cash = March futures + basis on the fixing date.
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