Numerical sign Relation between markets

 Positive Futures higher than cash or, alternatively
 cash lower than futures

 Futures is lower than cash or, alternatively
 negative cash is higher than futures



 The standard deviation for the overall average basis is presented

 in the third column. The number 3.29 in the second line means that ap-

 proximately 68 percent of the measurements lie $3.29 above the average

 basis of $1.67 for that week and $3.29 below the average basis. In other

 words, 68 percent of the time the basis would fall in the range between

 +$1.62 and -$4,96.

 The average basis for 200-240 pound barrows and gilts is found in

the fourth column, with its standard deviation immediately following.

The interpretation of the numbers is the same as given above.

 Charts of the basis for the two different weight classes are given

in Figures 1 and 2. The solid line shows the basis derived from the

average of the weekly prices. It corresponds to the data given in

Table 4. The dotted lines below show the basis that would be relevant

to producers who expect their hogs to only receive the lowest prices in

the Live Oak market. The upper line, on the other hand, is the basis

that would be most relevant to producers who would expect their hedged

hogs to command the top market price.

 A seasonality effect is apparent in both figures, with Florida prices

being farthest below futures prices in April (about $6 difference) and

November (about $4 difference). Hedgers should be careful in using the

futures market to account for these variations as well as the ones within

a week. The next section provides a summary of how a Florida producer