DAILY BASIS AND CASH INDEX SUMMARY:
The national average basis for corn was unchanged at 31 cents under the December futures contract while the DTN National Corn Index was unchanged at $3.27. The national average basis for soybeans was 2 cents weaker at 55 cents under the November futures contract while the DTN National Soybean Index was down 1 cent at $8.99. The national average basis for HRW wheat was 10 cents weaker at 37 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was up 1 cent at $4.49. The national average basis for HRS wheat was 3 cents stronger at 42 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 10 cents at $5.04.
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The national average corn basis for Tuesday is at 31 cents under the December futures, unchanged from Monday's basis. December corn barely posted a gain Tuesday, up 1/4 cent, in spite of more fresh export business on day one of the new-crop year. USDA reported private exporters sold 596,000 metric tons (mt) of corn for delivery to China during the 2020/2021 marketing year. Monday afternoon USDA reported corn condition for the week ended Aug. 30 declined for the fourth consecutive week to 62% good to excellent. Reductions in 14 states were reported with Iowa showing another sharp reduction at 25% poor to very poor versus 21% the prior week. DTN weather factors are neutral for corn, but it is still unknown what recent storms and then hot and dry weather did to some of the corn crop. The shuttle basis for corn delivered to the Pacific Northwest was steady for October and November and currently there are no posted bids for #3YC. Secondary shuttle freight has surged higher for October with the bid at $900 per above tariff and ask at $1,800 per car. Ethanol plant basis once again stronger in Cedar Rapids where plants struggled to regain power after the derecho a few weeks ago and basis in central Illinois also stronger Tuesday. Some plants elsewhere are getting ready for fall maintenance and are not pushing basis.
The national average soybean basis for Tuesday is at 55 cents under the November futures, 2 cents weaker than Monday's basis. On the first day of the new-crop year, November soybeans were up 1 1/4 cents after USDA reported Tuesday that private exporters sold 132,000 mt of soybeans for delivery to unknown destinations during the 2020/2021 marketing year. USDA reported Monday afternoon that the soybean condition declined for the third consecutive week at 66% good to excellent, with reductions in 14 states, most notably Iowa again at 18% poor to very poor for the week ended Aug. 30 versus 13% the prior week. The track PNW shuttle basis was 2 cents stronger for October, while the Gulf basis was 1 cent weaker. Barge freight is weaker nearby and barge lines report there isn't much trading so far in September, while current rains in the southern U.S. have stalled harvest, slowing demand for barges this week.
SOFT RED WINTER WHEAT:
The national average SRW wheat basis for Tuesday is at 28 cents under the December futures, 2 cents stronger than Monday's basis.
HARD RED WINTER WHEAT:
The national average HRW wheat basis for Tuesday is at 37 cents under the Kansas City December futures, 10 cents weaker than Monday's basis. The KC December futures were up 10 1/4 as more talk of China swirled through the market. The Texas Gulf and PNW basis levels were both 20 cents stronger and the KC spot milling basis was 10 cents stronger for 11.8% and 13% through 13.4% proteins.
HARD RED SPRING WHEAT:
The national average HRS wheat basis for Tuesday is at 42 cents under the Minneapolis December futures, 3 cents stronger than Monday's basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis December futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were up 15 cents at +135*; 14% proteins were not quoted; 14.5% proteins were not quoted; 15% proteins were unchanged at +150N. Receipts were 52 cars, which included two trains.* (Bid=B Ask=A Nominal=N) Wheat on the MGEX floor is traded delivered Chicago/beyond.
Mary Kennedy can be reached at firstname.lastname@example.org
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