DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 21 cents under the December futures contract while the DTN National Corn Index was down 1 cent at $3.97. The national average basis for soybeans was 1 cent stronger at 52 cents under the November futures contract while the DTN National Soybean Index was up 4 cents at $10.35. 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 17 cents at $5.26. 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 12 cents at $5.35.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.97	-$0.01	-$0.21	Dec	$0.009
Soybeans:	$10.35	$0.04	-$0.52	Nov	$0.002
SRW Wheat:	$5.91	-$0.11	-$0.29	Dec	$0.015
HRW Wheat:	$5.26	-$0.17	-$0.26	Dec	$0.009
HRS Wheat:	$5.35	-$0.12	-$0.30	Dec	$0.002

CORN:

The national average corn basis for Monday is at 21 cents under the December futures, 1 cent stronger than Friday's basis. December corn closed down 1 1/2 cents to start the week, the first lower close in six sessions. The corn market was sympathetic to the drop in wheat prices, despite a decent weekly inspections report. Export inspections reported for corn for the week ended Oct. 22 added to total inspections for this crop year, now up 75% versus one year ago. The cash corn price is still running high, keeping many farmers on the sidelines. While harvest is still not complete, buyers are finding it hard to buy new-crop corn to cover their commitments. The basis for shuttlers delivered to the Pacific Northwest was steady for last half November and 5 cents stronger for December. BNSF secondary shuttle freight was cheaper for last half November bids at $200 per car above tariff and offers at $600 per car, while December freight was unchanged. UP secondary freight was also cheaper with first half November bid at $200 per car and offered at $500 per car. Farmers are reporting that many ethanol plants have narrowed spot basis levels 5 cents to 10 cents in some areas to entice selling.

SOYBEANS:

The national average soybean basis for Monday is at 52 cents under the November futures, 1 cent stronger than Friday's basis. November soybeans closed up 4 cents, while December soymeal was up $3.60 and soybean oil closed up 35 cents. The soybean market saw another round of fresh business with USDA announcing private exporters sold 135,000 metric tons of soybean meal for delivery to the Philippines and 120,700 metric tons of soybeans for delivery to unknown destinations during the 2020-21 marketing year. Weekly export inspections were also supportive and showing total inspections in 2020-21 are up 78% from the prior year. The track PNW shuttle basis was 5 cents weaker for November, while November CIF NOLA basis was 1 cent stronger. Barge freight continues to move higher in the Twin Cities and middle Mississippi River markets, but other markets have been flat. The Lower Mississippi River is still seeing problems due to low water, and on top of that, Zeta is expected to make landfall possibly in the Gulf. Processor bids have narrowed as much as 10 cents as crushing plants are seeing good margins and demand.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is at 29 cents under the December futures, 2 cents stronger than Friday's basis.

HARD RED WINTER WHEAT: The national average HRW wheat basis for Monday is at 26 cents under the Kansas City December futures, unchanged from Friday's basis. The KC December fell 17 3/4 cents as more moisture in the Southern Plains and key areas of Russia pulled the winter wheat markets lower. Weekly export inspections were not great, and currently, total inspections for 2020-21 are only 1% higher than the prior year. Export basis at the Texas Gulf and PNW is steady but barely and milling basis hasn't been tested for nearly a week on the KC spot.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 30 cents under the Minneapolis December futures, unchanged from Friday'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 unchanged at +65N to +100N; 14% proteins were not quoted; 14.5% proteins were down 5 cents to unchanged at +105* to +110; 15% proteins were up 5 cents to unchanged at +125B to +170. Receipts were 90 cars, which included three 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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