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 up 1 cent at $5.56. The national average basis for soybeans was 1 cent stronger at 42 cents under the January futures contract and the DTN National Soybean Index was up 6 cents at $11.80. The national average basis for HRW wheat was 1 cent stronger at 16 cents under the December futures contract and the DTN National Hard Red Winter Wheat Index was up 11 cents at $8.12. The national average basis for HRS wheat was 2 cents stronger at 36 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 9 cents at $10.17.
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The national average corn basis for Thursday is 14 cents under the December futures, unchanged from Wednesday's basis. December corn traded lower nearly all session, but front-month December managed to give a 1/4-cent gain on the close. The corn market retreated after it likely became concerned over the EIA reported ethanol production last week declined for the first time in six weeks. But given the strong margins still at plants, they will continue to buy corn and the lower production could be a factor of tight logistics to move product out. The end of harvest could be delayed for some farmers living in the Eastern Corn Belt and Upper Midwest as Thursday weather features moderate rains. Track Pacific Northwest shuttle basis and CIF NOLA basis was steady, while track St. Louis was firm. UP secondary shuttle freight is higher with bids of $500 for first half November and $300 over for second half against no offers for either time slot. First half December was bid at $300 over against offers of $800 over. Ethanol plant basis remains steady to higher throughout the Midwest.
The national average soybean basis for Thursday is at 42 cents under the January futures, 1 cent stronger than Wednesday's basis. January soybean futures closed up 8 3/4 cents at $12.21 1/2 and March closed up 4 1/4 cents at $12.33 1/4, while December soybean oil closed unchanged at 50.14 cents and December meal closed up $2.10 at $344.50. Soybean oil was unable to find support from the rapeseed futures. Soybeans continue to perform well given our slow export market and with China MIA. Rumors have been swirling that China may have picked up a few cargoes of beans Wednesday split between the U.S. PNW and Brazil on Wednesday, but PNW soybean basis certainly isn't responding as basis there was 5 cents weaker late Wednesday. Track PNW soybean basis remained unchanged Thursday, while track St. Louis and CIF NOLA basis was 4 cents stronger. Processor basis was mixed but remains at strong levels for this time of year.
SOFT RED WINTER WHEAT
The national average SRW wheat basis for Thursday is at 49 cents under the December futures, 2 cents stronger than Wednesday's basis.
HARD RED WINTER WHEAT:
The national average HRW wheat basis for Thursday is at 16 cents under the Kansas City December futures, 1 cent stronger than Wednesday's basis. December KC wheat closed up 10 1/2 cents at $8.28, December Chicago wheat was up 9 1/2 cents at $8.12 1/2 and December Minneapolis wheat was up 7 cents at $10.53 1/4. KC milling premiums have been climbing for quite a while now as mills need bushels to grind for flour. Spot KC cars on Thursday traded higher with 11.4% through 11.6% proteins up 10 cents, 11.8% up 11 cents and 12% through 12.4% up 3 cents. Exports remain a distant memory as U.S. wheat is too expensive.
HARD RED SPRING WHEAT:
The national average HRS wheat basis for Thursday is at 36 cents under the Minneapolis December futures, 2 cents stronger than Wednesday's basis.
Mary Kennedy can be reached at firstname.lastname@example.org
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