DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 22 cents under the December futures contract while the DTN National Corn Index was up 3 cents at $3.98. The national average basis for soybeans was unchanged at 53 cents under the November futures contract while the DTN National Soybean Index was up 10 cents at $10.31. The national average basis for HRW wheat was unchanged at 26 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was up 9 cents at $5.35. The national average basis for HRS wheat was 1 cent weaker at 30 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 2 cents at $5.47.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.98	$0.03	-$0.22	Dec	$0.004
Soybeans:	$10.31	$0.10	-$0.53	Nov	$0.003
SRW Wheat:	$6.02	$0.09	-$0.31	Dec	-$0.006
HRW Wheat:	$5.43	$0.09	-$0.26	Dec	-$0.008
HRS Wheat:	$5.47	$0.02	-$0.30	Dec	-$0.012

CORN:

The national average corn basis for Friday is at 22 cents under the December futures, unchanged from Thursday's basis. December corn closed up 3 cents Friday, reaching yet another new 1-year high, as the market did a happy dance on USDA announcing private exporters sold 100,000 metric tons (mt) of corn for delivery to unknown destinations during the 2020-21 marketing year. The strong pace of export business adds to the strong cash price, but also adds to the woes of those who need to buy cash corn from farmers who have backed away from the market. For the week, corn closed up 17 1/4 cents and, in turn, has added strength to corn byproduct and coproduct feed prices with DTN's weekly DDG average price up $13 ton for the week, just to name one. Higher priced DDG are also a factor of the slowdown in ethanol plant production which adds to tighter supplies. The basis for shuttles delivered to the Pacific Northwest was steady, while CIF NOLA basis was 6 cents stronger. BNSF secondary shuttle freight bids for last half October were lower at $500 per car above tariff versus offers of $800, while first half November was slightly higher with bids at $500 per car versus $800 per. UP secondary freight was unchanged for first half November bis at $300 per car and offered at $500. Ethanol basis was 5 cents stronger in east-central Iowa, 4 cents stronger in southwest Iowa, 9 cents stronger in east-central Nebraska, 5 cents stronger in northeast Kansas and 3 cents stronger in southwest Kansas.

SOYBEANS:

The national average soybean basis for Friday is at 53 cents under the November futures, unchanged from Thursday's basis. November soybeans closed up 10 cents Friday, the highest spot price in a year, and for the week gained a hefty 33 3/4 cents. The market got some help from the higher soy meal market which posted a $13.94 gain for the week and its highest level since May 2018. Weather in Brazil is starting to improve, but as of Oct. 22, only 16% of the soybeans were planted and behind last year's progress at this time. Soybean oil was also higher Friday, gaining 3.4% for the week. The track PNW basis was weaker with November down 5 cents and December down 2 cents. The shuttle basis delivered to St. Louis was 6 cents stronger and CIF NOLA remained steady. Barge freight has been firm and shippers in the Upper Mississippi are currently the main players and river basis along there has been stronger the past week. Basis on the Illinois River was stronger as we near the opening of the rest of the locks that were closed for maintenance. The Lower Mississippi River is still suffering from low water and another grounding occurred near Vicksburg on Friday, closing the river so salvage crews could work to clean it up.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 31 cents under the December futures, 1 cent weaker than Thursday's basis.

HARD RED WINTER WHEAT

The national average HRW wheat basis for Friday is at 26 cents under the Kansas City December futures, unchanged from Thursday's basis. December KC futures closed up 9 1/2 cents and for the week gained 11 cents, finding support in the rest of the markets as fresh news is scarce. The spot KC milling premiums were not tested and the Texas Gulf and PNW basis levels were steady after moving lower early in the week. U.S. wheat still is high priced and needs a correction if it wants to play in the export game.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 30 cents under the Minneapolis December futures, 1 cent 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 unchanged not quoted; 13.5% proteins were down 40 cents to down 5 cents at +65* to +100*; 14% proteins were unchanged to up 30 cents at +110N to +150; 14.5% proteins were unchanged at +110N; 15% proteins were unchanged at +120N to +170N. Receipts were 159 cars, which included six 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

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