DTN Daily Basis Comments

Friday Morning Basis Update

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 12 cents under the December futures contract while the DTN National Corn Index was down 2 cents at $5.61. The national average basis for soybeans was unchanged at 39 cents under the January futures contract and the DTN National Soybean Index was down 11 cents at $12.38. The national average basis for HRW wheat was unchanged at 16 cents under the December futures contract and the DTN National Hard Red Winter Wheat Index was down 16 cents at $8.11. The national average basis for HRS wheat was unchanged at 29 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was down 10 cents at $9.88.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.61 -$0.02 -$0.12 Dec $0.006
Soybeans: $12.26 -$0.11 -$0.39 Jan $0.004
SRW Wheat: $7.79 $0.03 -$0.41 Dec $0.053
HRW Wheat: $8.11 -$0.07 -$0.16 Dec $0.001
HRS Wheat: $9.88 -$0.10 -$0.29 Dec $0.000

CORN:

The national average corn basis for Thursday is 12 cents under the December futures, unchanged from Wednesday's basis. December corn closed down 2 1/4 cents Thursday after starting the day higher. But once the lackluster export sales and shipment report came out, the market faltered. USDA said weekly corn exports were down slightly from the prior week and shipments for the week ended Nov. 11 were slightly below what is needed to reach the current USDA export forecast, while total commitments are down 6% from one year ago. While weather in South America has been favorable lately, the fear remains that La Nina could spell trouble for crops in southern Brazil and Argentina. The bright spot for cash corn prices remains with demand from ethanol plants who continue to capture good margins. The track shuttle PNW corn basis was 2 to 4 cents stronger in the last-half December slot, while track St. Louis was 3 cents stronger. Both UP and BNSF secondary shuttle freight remains strong through the end of the year.

SOYBEANS:

The national average soybean basis for Thursday is at 39 cents under the January futures, unchanged from Wednesday's basis. January soybeans closed down 11 3/4 cents Thursday after starting the day higher, but eventually the lower soybean meal and soybean oil markets pulled soybeans down. USDA's weekly export sales and shipment report showed soybean export commitments for 2021-22 are 32% below a year ago, a bearish sign for U.S. exports. China has not been knocking on our door as much as we would like and has been busy buying Brazil soybeans, which is not a good sign for U.S. doing business with them at a time when we normally are their "go-to" place for soybeans. Processors have been supporting the domestic demand as crush margins are strong, but later this week they have been weakening basis bids. Heading into a holiday week next week, they could have enough supplies. Track PNW shuttle basis was steady, while track St. Louis was 4 cents stronger and CIF NOLA was 3 cents stronger. Barge freight markets continue to show demand in St. Louis and now on the Illinois River where shippers are looking to load out beans.

SOFT RED WINTER WHEAT

The national average SRW wheat basis for Thursday is at 41 cents under the December futures, 5 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, unchanged from Wednesday's basis. KC December was down 6 3/4 as fund buying was featured in all three wheat markets on the day. Japan bought 121,000 metric tons (mt) of wheat in their weekly tender with 32,000 mt Canadian and the rest U.S. wheat. The purchase was a mixture of HRW, HRS and SWW wheats. Taiwan, also a regular U.S customer, bought 48,000 mt of wheat. Rail bids for HRW and HRS wheat have seen bids strengthen because of the poor logistics right now and SRW wheat CIF basis is stronger. Mills are also filling up on spot cars of HRW and HRS wheat as the holiday slowdown season is starting next week.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Thursday is at 29 cents under the Minneapolis December futures, unchanged from Wednesday'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 +140*; 14.5% proteins were at +187B* (instance); 15% proteins were up 25 cents to unchanged at +160 and 16 proteins were unchanged +130N. Wheat receipts on the exchange floor were 81 cars, which included three 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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