DTN Daily Basis Comments

Friday Morning Basis Comments

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

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 2 cents weaker at 17 cents over the December futures contract while the DTN National Corn Index was down 1 up 1 cent at $5.43. The national average basis for soybeans was 4 cents weaker at 37 cents under the November futures contract while the DTN National Soybean Index was up 2 cents at $12.46. The national average basis for HRW wheat was 11 cents stronger (correction from Thursday) at 19 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was up 15 cents at $6.90. The national average basis for HRS wheat was 1 cent stronger at 9 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 2 cents at $8.90.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.43 $0.01 $0.17 Dec -$0.017
Soybeans: $12.46 $0.02 -$0.37 Nov -$0.037
SRW Wheat: $6.58 $0.00 -$0.59 Dec -$0.032
HRW Wheat: $6.90 $0.15 -$0.19 Dec $0.104
HRS Wheat: $8.90 $0.02 -$0.09 Dec $0.014

CORN:

The national average corn basis for Thursday is at 17 cents over the December futures, 2 cents weaker than Wednesday's basis. December corn closed up 2 3/4 cents Thursday as the market is still cautious about how long it will take to get Gulf shipments moving again and how much can actually be switched to Houston Gulf or the PNW and, if so, how long that could take. Weekly export sales and shipments for the week ended Aug. 26 noted net cancellations of 11.8 million bushels (mb) (300,800 mt) of corn export sales and an increase of 45.6 mb (1,159,500 mt) for 2021-22. Last week's export shipments were below what is needed each week to achieve USDA's current export estimate for 2020-21. Export commitments in 2020-21 are up 57% from a year ago and near the current USDA estimate for the old-crop year that ended Aug. 31. We may not see much improvement next week when the last three days of August are reported, given the stoppage of Gulf exports as of Aug. 20 when Hurricane Ida tore through New Orleans. There is still no basis posted for CIF GULF, while basis on the river continues to fall apart. Illinois River basis is 15 to 30 cents weaker and basis in the Upper Mississippi is 4 to 10 cents weaker. Ethanol plant basis was 55 cents weaker in east-central Nebraska, 45 cents stronger in southeastern Nebraska, 25 cents weaker in central Iowa, 17 cents weaker in central Iowa and 10 cents stronger in northwest Missouri.

SOYBEANS:

The national average soybean basis for Thursday is at 37 cents under the November futures, 4 cents weaker than Wednesday's basis.

November soybeans were up 5 1/2 cents Thursday as buyers showed up after the large declines earlier this week. More fresh export business with USDA reporting private exporters sold 126,000 mt of soybeans for delivery to China during the 2021/2022 marketing year. Weekly export sales and shipments for the week ending Aug. 26 noted an increase of 2.5 mb (68,200 mt) of soybean export sales and an increase of 78.4 mb (2,132,500 mt) for 2021-22. Weekly export shipments were below what is needed each week to achieve USDA's current export estimate for 2020-21, while soybean export commitments in 2020-21 are above USDA's export estimate. Processor basis continues to weaken as we get close to harvest. Track St. Louis basis was 25 cents weaker, while basis on the Ohio River was 20 to 30 cents weaker. Ceres Consulting LLC noted that barge freight is offered higher, but bids don't seem to want to follow at this point. "River is open now mile 167 and north so it is allowing empties to come out of Baton Rouge, Darrow and CGB 164 fleet. That will help those desperate for empties in the Rosedale south market. It appears all the freight owed MTCT for next week has already been placed for Monday so shippers in those areas look to be in good shape for whatever harvest happens next week."

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Thursday is at 59 cents under the December futures, 3 cents weaker than Wednesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Thursday is at 19 cents under the Kansas City December futures, 11 cents stronger than Wednesday's basis. KC December closed up 5 cents even with poor weekly exports sales and shipments reported Thursday morning. There was talk about Russia's Ag Ministry putting back in an export quota, but nothing reported yet. Mills are paying up for low protein for blending with ordinary protein through 11.2% up 7 cents and 11.6 through 11.8% up 1 cent.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Thursday is at 9 cents under the Minneapolis December futures, 1 cent stromher than Wednesday'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 unchanged at +110*; 14% proteins were unchanged to down cents at +90N to +115; 14.5% proteins were unchanged at +85N to +100N, 15% proteins were up 5 cents to up 10 cents at +100 to 150 and 16% proteins were not quoted. Receipts were 99 cars, which included four train(s).* (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: