DTN Daily Basis Comments

Corn Basis Stronger

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 up 1 cent at 13 cents under the December futures contract while the DTN National Corn Index was unchanged at $5.63. The national average basis for soybeans was unchanged at 41 cents under the January futures contract and the DTN National Soybean Index was up 14 cents at $12.17. The national average basis for HRW wheat was 2 cents stronger at 16 cents under the December futures contract and the DTN National Hard Red Winter Wheat Index was up 5 cents at $8.20. The national average basis for HRS wheat was 10 cents stronger at 29 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was down 14 cents at $9.97.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.63 $0.00 -$0.13 Dec $0.006
Soybeans: $12.17 $0.14 -$0.41 Jan $0.008
SRW Wheat: $7.84 $0.09 -$0.42 Dec -$0.002
HRW Wheat: $8.20 $0.05 -$0.16 Dec $0.021
HRS Wheat: $9.97 -$0.14 -$0.29 Dec $0.100

CORN:

The national average corn basis for Monday is 13 cents under the December futures, 1 cent stronger than Friday's basis. December corn closed nearly unchanged, down 3/4 cent, and seems to be tired to start the week. The U.S. corn harvest in the western states is near the finish line, while the Eastern Corn Belt is still slow due to too much precipitation. In the weekly inspections report early Monday, USDA said total inspections are 18% below a year ago as business has been slow. In their daily export sales reporting system, USDA also reported 7.8 million bushels (mb) (198,200 mt) of U.S. corn were sold to Mexico, with 5.8 mb for 2021-22 and the balance for 2022-23. Overall, the corn market continues to see the best demand support from ethanol plants, which continue to enjoy strong margins. Track PNW shuttle basis is still sound asleep, while CIF NOLA basis was 3 cents stronger for last half November and track St. Louis was 11 cents stronger. UP secondary shuttle freight bids were higher with mid period November bid at $600 over and last half November bid at $400 over with no offers for either time slot. BNSF secondary shuttle freight is bid at $450 for mid period November against no offers and last half November is bid at $250 over against offer of $450 over.

SOYBEANS:

The national average soybean basis for Monday is at 41 cents under the January futures, unchanged from Friday's basis. January soybeans closed up 13 cents as December soybean was up $9.60 on the day as market reaction to a lack of lysine continues. The National Oilseed Processors reported the October soybean crush at nearly 184 million bushels versus the trade guess of 181.9 mb and the third highest crush on record. Soybean oil faded again with December down 0.77 cent, with pressure Monday coming from NOPA reporting soybean oil stocks up 23% from a year ago. In their daily export sales reporting system, USDA also reported a sale of 9.7 mb (264,000 metric tons) of U.S. soybeans sold to unknown destinations for 2021-22. Track PNW shuttle basis was 5 cents weaker at +170 now for all of November. CIF NOLA basis was 3 cents stronger and track St. Louis was 7 cents stronger. Processors are backing off basis in some spots with southern Minnesota 4 cents weaker and another southern Minnesota processor 13 cents weaker, south central Nebraska 10 cents weaker northwest Iowa 10 cents weaker and northeast south Dakota 5 cents weaker. With bean harvest picking up the past week, more cash soybeans came to market.

SOFT RED WINTER WHEAT

The national average SRW wheat basis for Monday is at 42 cents under the December futures, unchanged from Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Monday is at 16 cents under the Kansas City December futures, 2 cents stronger than Friday's basis. The KC December futures closed up 3 cents while Minneapolis December took a dive, down 23 1/2 cents. Weekly export inspections provided a nice surprise coming in above the highest estimate of traders, with HRW the bulk of inspections. The Texas Gulf 11% HRW basis was down 10 cents with SRW wheat milling bids firm and export basis got a boost from Nigeria tendering for SRW wheat.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 29 cents under the Minneapolis December futures, 10 cents stronger than Friday's basis. The Minneapolis spot spring wheat cash market closed as follows basis the Minneapolis December futures: 12% proteins were not quoted; 13% proteins were not quoted; 14% proteins were unchanged at +100N; 14.5% proteins were down 5 cents at +105 and 15% proteins were down 30 cents to unchanged at +130 to +160. Wheat receipts on the exchange floor were 27 cars, which included 1 train(s).* MGEX Daily Grain Prices are Delivered Chicago/Beyond: Spot No. 1 Milling Northern/Dark Northern Spring Wheat.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

Mary Kennedy

Mary Kennedy
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