DTN Daily Basis Comments

Soybean Basis Stronger; Corn Basis Steady

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 5 cents at $5.45. The national average basis for soybeans was 1 cent stronger at 44 cents under the January futures contract and the DTN National Soybean Index was down 21 cents at $11.79. The national average basis for HRW wheat was 2 cents weaker at 19 cents under the December futures contract and the DTN National Hard Red Winter Wheat Index was down 6 cents at $7.67. The national average basis for HRS wheat was 5 cents weaker at 45 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was down 31 cents at $9.72.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.45 -$0.05 -$0.14 Dec -$0.003
Soybeans: $11.79 -$0.21 -$0.44 Jan $0.007
SRW Wheat: $7.29 -$0.03 -$0.45 Dec $0.043
HRW Wheat: $7.67 -$0.06 -$0.19 Dec -$0.014
HRS Wheat: $9.72 -$0.31 -$0.45 Dec -$0.043

CORN:

The national average corn basis for Thursday is 14 cents under the December futures, unchanged from Wednesday's basis. December corn closed down 4 3/4 cents per bushel at 5.59 1/4, closing lower due in part to a stronger U.S. dollar and another lower day in wheat markets. Meanwhile, cash ethanol prices were higher once again, still good news for corn demand at ethanol plants. Thursday's weekly export sales and shipment report showed an increase of sales, but shipments were below what is needed each week to meet the current USDA estimate, while total commitments in 2021-22 are down 7% versus one year ago. The track PNW shuttle basis is still sound asleep, while CIF NOLA basis was 6 cents weaker for November and 3 cents weaker for December. Farmers are busy wrapping up the harvest and right now the most enticing thing for them is free DP (delayed price) at elevators and ethanol plants that are still offering it.

SOYBEANS:

The national average soybean basis for Thursday is at 44 cents under the January futures, 1 cent stronger than Wednesday's basis. January soybeans closed down 21 1/2 cents Thursday, in spite of a decent export sales and shipment report. The USDA said that for the week ending Oct. 28, both export sales and shipments rose, with shipments above what is needed to reach the current USDA export estimate. However, soybean exports are down 33% from the same timeframe one year ago. Soybeans came under pressure from weakness in December soybean oil closing down 1.45 cents as the crude oil market posted another sharp loss on the day. Track PNW shuttle basis remained steady, while track St. Louis was unchanged for November and 4 cents weaker for December. CIF NOLA basis was 4 cents weaker for November and December, and barge freight is steady with trades seen for this and next week only as the harvest is getting closer to the finish line.

SOFT RED WINTER WHEAT

The national average SRW wheat basis for Thursday is at 45 cents under the December futures, 4 cents stronger 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, 2 cents weaker than Wednesday's basis. The KC December futures were down 4 1/2 cents, continuing to fall from the contract high set earlier in the week. The spot KC milling premiums were higher as the mills remain hungry. The premium for 12% through 12.2% was up 7 cents, 12.4% was up 3 cents and 12.6% through 12.8% was up 2 cents. The weekly export sales and shipment report Thursday was a mixed bag showing an increase of sales, but shipments were below what is needed each week to reach the USDA export estimate. Total export commitments are down 225 from the same time a year ago.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Thursday is at 45 cents under the Minneapolis December futures, 5 cents weaker 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 not quoted, 14% proteins were unchanged at +95N to +125N; 14.5% proteins were not quoted, 15% proteins were down 15 cents to unchanged at +110 to +145 and 16 proteins were not quoted. Receipts were 8 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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