DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 20 cents under the December futures contract while the DTN National Corn Index was down 1 cent at $3.96. The national average basis for soybeans was unchanged at 52 cents under the November futures contract while the DTN National Soybean Index was down 5 cents at $10.30. 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 down 3 cents at $5.23. The national average basis for HRS wheat was unchanged at 30 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was down 4 cents at $5.31.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.96	-$0.01	-$0.20	Dec	$0.009
Soybeans:	$10.30	-$0.05	-$0.52	Nov	$0.000
SRW Wheat:	$5.86	-$0.05	-$0.30	Dec	-$0.005
HRW Wheat:	$5.23	-$0.03	-$0.26	Dec	-$0.003
HRS Wheat:	$5.31	-$0.04	-$0.30	Dec	-$0.002

CORN:

The national average corn basis for Tuesday is at 20 cents under the December futures, 1 cent stronger than Monday's basis. December corn closed down 1 3/4 cents Tuesday as trading was light and there weren't any more fresh exports sales announced. Monday's crop progress report showed U.S. corn harvest was 72% done versus the average of 56% at this time of year. The states in the Upper Midwest that saw up to a foot of snow in spots last week were not really affected as harvest was already way ahead of schedule. A warmup at the end of the week will get farmers back to harvesting there. Ohio and Missouri were the two states that were the farthest behind average. The cash price is still strong as basis in some parts of the Midwest has narrowed, but farmer engagement is still slow. The basis for shuttles delivered to the PNW was unchanged, while shuttle basis delivered to St. Louis was 2 cents stronger. BNSF secondary shuttle freight has moved slightly higher on the bid side with returns now bid at $500 per car over tariff and offered at $600, while first half November was bid at $500 per car and offered at $800. Secondary UP shuttles were unchanged. Ethanol plant basis remains firm for the most part with southern Minnesota 1 cent stronger, southeast South Dakota 3 cents stronger, northwest Kansas 4 cents stronger, southeast Nebraska 5 cents stronger and east-central Nebraska 5 cents weaker. Basis levels are still historically strong in the Upper Midwest at elevators who ship to the PNW.

SOYBEANS:

The national average soybean basis for Tuesday is at 52 cents under the November futures, unchanged from Monday's basis. November soybeans were down 5 1/2 cents Tuesday after reaching a new 4-year high in the session, but fell back as traders started to take profits. With no fresh export business and an improved weather forecast for dry areas needing rain in South America, the market has little to go higher on. Lower soybean oil futures added some pressure with December down 35 cents and soybean meal also had a poor showing on the day, down $5.60. The track PNW shuttle basis was 3 cents weaker for Oct/Nov/Dec at +142F, while rail basis at St. Louis was 3 cents stronger for October and 1 cent stronger for November. ACBL noted that with the pending arrival of Hurricane Zeta, New Orleans has moved to port condition ZULU from MM 163 south, with expectations Lower Mississippi River from MM 163 to MM 303 will go there as well, which will stop or considerably slow traffic heading to the Gulf.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Tuesday is at 30 cents under the December futures, 1 cent weaker than Monday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Tuesday is at 26 cents under the Kansas City December futures, unchanged from Monday's basis. KC December futures were down 2 3/4 cents as expectations for moisture in the dry U.S. and Black Sea winter wheat areas pressured the markets again. In the U.S., the first crop condition report of the season showed HRW winter conditions came in at their lowest in 10 years. The track PNW 11.5% protein basis was 15 cents weaker, while the Texas Gulf remained steady for now. The millings basis on the KC spot market has not been tested for a while but premiums will likely fade some when it is.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is at 30 cents under the Minneapolis December futures, unchanged from 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 unchanged not quoted; 13.5% proteins were up 45 cents to up 5 cents at +110; 14% proteins were not at +130; 14.5% proteins were unchanged to up 10 cents at +105N to +120; 15% proteins were up 5 cents to unchanged at +130 to +170. Receipts were 14 cars, which included zero 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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