DTN Daily Basis Comments

Thursday 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 unchanged at 14 cents under the December futures contract while the DTN National Corn Index was down 9 cents at $5.50. The national average basis for soybeans was 1 cent stronger at 45 cents under the January futures contract and the DTN National Soybean Index was down 11 cents at $11.99. The national average basis for HRW wheat was unchanged at 17 cents under the December futures contract and the DTN National Hard Red Winter Wheat Index was down 8 cents at $7.74. The national average basis for HRS wheat was unchanged at 40 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was down 32 cents at $10.04.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.50 -$0.09 -$0.14 Dec $0.001
Soybeans: $11.99 -$0.11 -$0.45 Jan $0.013
SRW Wheat: $7.32 -$0.09 -$0.49 Dec $0.011
HRW Wheat: $7.74 -$0.08 -$0.17 Dec -$0.005
HRS Wheat: $10.04 -$0.32 -$0.40 Dec -$0.002

CORN:

The national average corn basis for Wednesday is 14 cents under the December futures, unchanged from Tuesday's basis. December corn closed down 9 cents per bushel at 5.64, closing lower a second day this week in spite of another bullish EIA report favoring corn demand. The midweek weather map shows dry conditions throughout the Corn Belt, which bodes well for harvest. The Eastern Corn Belt will see rain by mid next week, adding to already soft fields trying to dry out in states that are behind their average harvest progress. The corn market also came under pressure from the weakness again Wednesday in the wheat markets. Track PNW corn basis is flat, while track St. Louis basis is 3 cents weaker for first half November and 2 cents stronger for last half. BNSF secondary shuttle freight is higher with first half November bid at $400 per car above tariff against offers of $700 over, while UP secondary freight is bid $100 over for first half November against offers of $400 over. Ethanol plants continue to be the supportive market for corn basis as the export market is of little help right now.

SOYBEANS:

The national average soybean basis for Wednesday is at 45 cents under the January futures, 1 cent stronger than Tuesday's basis. January soybeans were down 12 cents to $12.44 1/4 on Wednesday, under pressure from a lower soybean oil as the crude oil market closed sharply lower. Soybean meal was on its own Wednesday, closing up $3.60 as end user demand has picked up. DTN weather factor remains bearish for soybeans as weather will be favorable this week for the U.S. soybean harvest to head towards the finish line. Bottom line on basis is that processors are pretty much supporting current levels. Track soybean basis was unchanged for November and 10 cents weaker for December, while track St. Louis was 2 cents weaker for first half November and CIF NOLA was 8 cents weaker. Other than interest in spot barges on the Illinois River, there isn't much else going on and thus barge freight remains flat. With the Illinois River in minor flood stage right now, tow sizes have been reduced from 15 to 12 barges until water levels recede.

SOFT RED WINTER WHEAT

The national average SRW wheat basis for Wednesday is at 49 cents under the December futures, 1 cent stronger than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 17 cents under the Kansas City December futures, unchanged from Tuesday's basis. The KC December futures were down 7 1/2 cents as Minneapolis wheat led the way lower, falling 31 1/2 cents as stops were triggered on the way down. Milling premiums were steady as no cars were sold on the KC spot market and overall, the domestic basis remains steady right now.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 40 cents under the Minneapolis December futures, unchanged from Tuesday'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 not quoted, 14% proteins were unchanged to down 15 cents at +95N to +125; 14.5% proteins were not quoted, 15% proteins were down 10 cents to down 15 cents at +125 to +145 and 16 proteins were unchanged at +125 to +130N. Receipts were 9 cars, 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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