DTN Daily Basis Comments

Monday Morning Basis Update

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 24 cents under the December futures contract while the DTN National Corn Index was down 1 cent at $3.78. The national average basis for soybeans was unchanged at 56 cents under the November futures contract while the DTN National Soybean Index was down 12 cents at $9.94. The national average basis for HRW wheat was 2 cents weaker at 29 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was down 2 cents at $5.30. The national average basis for HRS wheat was 5 cents weaker at 36 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was down 4 cents at $5.24.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $3.78 -$0.01 -$0.24 Dec $0.008
Soybeans: $9.94 -$0.12 -$0.56 Nov $0.006
SRW Wheat: $5.95 $0.06 -$0.30 Dec -$0.009
HRW Wheat: $5.30 -$0.02 -$0.29 Dec -$0.025
HRS Wheat: $5.24 -$0.04 -$0.36 Dec -$0.050

CORN:

The national average corn basis for Friday is at 24 cents under the December futures, 1 cent stronger than Thursday's basis. December corn closed down 1 3/4 cents Friday and gained 7 cents for the week. The market traded at a new high early in the session after USDA reported private exporters sold 128,000 metric tons (mt) of U.S. corn to Mexico for delivery during the current crop year. The weekly export sales and shipments report delayed until Friday showed corn export commitments up 156% from a year ago. The basis for shuttles delivered to the Pacific Northwest was 4 cents stronger for November and 5 cents stronger for December. BNSF secondary shuttle freight hasn't moved much and is still expensive with October bid at $1,000 per car above tariff and offered at $1,400 per car and first half November bid at $800 per car and offered at $1,200.

SOYBEANS:

The national average soybean basis for Friday is at 56 cents under the November futures, unchanged from Thursday's basis. November soybeans were down 12 1/4 cents on Friday and for the week lost 15 1/2 cents. This despite USDA reporting that private exporters sold 391,150 mt of soybeans for delivery to unknown destinations during the 2020/2021 marketing year and the weekly export sales and shipments report showing soybean export commitments up 142% from a year ago. The market turned lower as recent dry weather concerns in central Brazil eased; a broad coverage of rain is expected over Brazil and northern Argentina in the next ten days. The track PNW shuttle basis remains firm at +140X for October and November and CIF NOLA basis was 3 cents stronger for October. Traders have noted that there is still limited elevator capacity on the PNW due to a continued pace of exports to China and other countries of soybeans, corn and wheat. River traffic has been moving at a steady pace for the most part and harvest is pushing nearby barge freight prices higher.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 30 cents under the December futures, unchanged Thursday's basis.

HARD RED WINTER WHEAT

The national average HRW wheat basis for Friday is at 29 cents under the Kansas City December futures, 2 cents weaker than Thursday's basis. KC December futures managed to close 3/4 cent higher in spite of a 7-cent gain in Chicago futures, but posted a hefty gain of 23 1/4 cents for the week. The market focus remains on the dry weather in southern Russia even as light rains are expected in the 7-day forecast. Domestic milling values are firm and according to Friday's Milling and Baking News, spring wheat flour was at $1 per cwt discount to winter wheat. On the export side, U.S. wheat remains too expensive, but so far the Gulf and PNW basis levels have remained steady.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 36 cents under the Minneapolis December futures, 5 cents weaker than Thursday'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 not quoted; 14% proteins were down 5 cents to down 10 cents at +105* to +130; 14.5% proteins were down 10 cents to down 15 cents at +100; 15% proteins were unchanged to down 35 cents at +140 to +150. Receipts were 76 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 mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

Mary Kennedy

Mary Kennedy
Connect with Mary: