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Have you ever made S’mores by putting your graham cracker, chocolate and marshmallow in the microwave? If so, you will understand the field of liquid refined product molecular expansion and contraction (congratulations). You may have heard it by a more common shorthand – “shrink”.

When I was learning about commodities, my professors would talk about a farmer’s “basis book.” It must have been easy to visualize, because the concept has stuck with me for over 20 years.

My professor, Dr. Wayne Purcell, gave us a simple assignment for homework on our first day: “Read Chapter 2 of my book, the one on Basis. It’s the only chapter that really matters.”