DTN Daily Basis Comments

Monday Morning Basis Comments

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent weaker at 14 cents under the December futures contract while the DTN National Corn Index was down 4 cents at $5.13. The national average basis for soybeans was unchanged at 47 cents under the November futures contract while the DTN National Soybean Index was up 1 cent at $12.38. The national average basis for HRW wheat was 1 cent stronger at 18 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was unchanged at $7.01. The national average basis for HRS wheat was unchanged at 13 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 5 cents at $9.03.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.13 -$0.04 -$0.14 Dec -$0.015
Soybeans: $12.38 $0.01 -$0.47 Nov -$0.001
SRW Wheat: $6.65 $0.06 -$0.58 Dec $0.001
HRW Wheat: $7.01 $0.00 -$0.18 Dec $0.004
HRS Wheat: $9.03 $0.05 -$0.13 Dec $0.004

CORN:

The national average corn basis for Friday is 14 cents under the December futures, 1 cent weaker than Thursday's basis. December corn closed down 2 1/2 cents Friday; for the week December corn was down 1/2 cent, even as the wheat markets posted higher closes again. Corn was under pressure from a higher U.S. dollar and from the ongoing harvest, with weather overall favorable in much of the Corn Belt. Southern harvest has been behind, but the harvest in much of the Midwest has been early. Farmers in parts of Indiana are reporting a mixed bag of test weights and disease pressure, while in parts of Illinois some farmers are reporting lower-than-expected yields and corn coming out of the fields with low moisture. In Minnesota, as harvest is just getting started, the corn crops that suffered drought conditions during the growing season are expected to show lower yields and disease. Track St. Louis was 3 cents stronger for September, while CIF NOLA basis was 8 cents stronger for September. Track PNW shuttle basis is unchanged to 5 cents weaker for October, with no bids showing for the rest of this month. For the week, DTN national average basis was 9 cents weaker versus one week ago.

SOYBEANS:

The national average soybean basis for Friday is at 47 cents under the November futures, unchanged from Thursday's basis. November soybeans closed up 3/4 cent Friday and, for the week, November soybeans closed up 1 cent, once again getting support from soybean oil as harvest pressure is limiting gains in soybeans. Favorable weather continues in most of the Midwest for a dry harvest, but on tap for the market is USDA's September 1 corn and soybean stocks on Thursday, Sept. 30 as U.S. soybean supplies remain historically tight. While Gulf recovery continues to pick up, the nearly three-week closure of most export terminals right after Hurricane Ida pushed China to buy eight to 10 cargoes of Brazilian soybeans according to traders and the uptick in the Brazil FOB basis during that time was also evidence something was going on. We also saw the track PNW shuttle basis weaken by 10 cents early last week for September/October, possibly another sign. Track St. Louis and CIF GULF basis was steady Friday, and the watch is on again for falling river levels at St. Louis creeping towards below zero gauge. It is expected by Oct 4, levels there could be -1 foot below zero by then, likely causing draft restrictions on barges.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 58 cents under the December futures, unchanged from Thursday's basis. December KC wheat closed down 1/4 cent Friday and for the week, December KC wheat closed up 6 3/4 cents. Mills are still featured buyers in the spot market and are still willing to pay up for cars that show for sale. The premium for ordinary proteins was 5 cents higher, 12% through 12.2% proteins were 6 cents higher, 12.4% proteins were 8 cents higher, 12.6% proteins were 5 cents higher and 12.8% proteins through 14 protein were 1 cent higher. "If you load a car and spot it, they will come" has been the miller's motto over the past week.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Friday is at 18 cents under the Kansas City December futures, 1 cent stronger than Thursday's basis.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 13 cents under the Minneapolis December futures, unchanged from 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 unchanged at +125N; 14% proteins were at +135N; 14.5% proteins were not quoted, 15% proteins were unchanged at +130N to +150N and 16% proteins were not quoted. Receipts were 1 car, which included zero 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
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