Why is the basis of corn starch futures always positive? The futures price is much lower than the spot price, and so are many agricultural products. Why?
Futures is the expected value, and it has to be delivered on the delivery date, and there are also inventory fees and handling fees in the middle. It is not only the price you see that needs to be increased a lot, so it will be much cheaper. Of course, some big traders rush to the futures market to buy contracts and do not trade, and then deliver the goods when the delivery is made.