On the stock exchange, a comparatively large difference between the spot price and the forward price of a commodity. A weak basis is often also called a “broad basis” or “more negative basis”. – In particular, a weak basis occurs mainly in grain at harvest time, when stocks are abundant. Buyers may now lower their purchase bid. As spot prices fall relative to futures, the basis weakens; it widens, as it is also called. A weak basis generally indicates a market that is poor to sell but good to buy. – See commodity futures contract.
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