DTN Daily Basis Comments

Monday 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 3 cents at $5.59. The national average basis for soybeans was unchanged at 39 cents under the January futures contract and the DTN National Soybean Index was down 2 cents at $12.25. The national average basis for HRW wheat was 2 cents weaker at 18 cents under the December futures contract and the DTN National Hard Red Winter Wheat Index was up 5 cents at $8.16. The national average basis for HRS wheat was 4 cents weaker at 33 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was down 11 cents at $9.77.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.59 -$0.03 -$0.12 Dec -$0.004
Soybeans: $12.25 -$0.02 -$0.39 Jan $0.002
SRW Wheat: $7.82 $0.03 -$0.41 Dec -$0.003
HRW Wheat: $8.16 $0.05 -$0.18 Dec -$0.026
HRS Wheat: $9.77 -$0.11 -$0.33 Dec -$0.045

CORN:

The national average corn basis for Friday is 12 cents under the December futures, unchanged from Thursday's basis. December corn closed down 2 1/4 cents Friday and lost 6 1/2 cents for the week. The market can't find much in the way of good news, but we are still seeing strong demand from ethanol plants as their margins remain good. The EPA announcement Thursday to delay mandate decisions was disappointing for the ethanol industry, but so far RINs are the only thing showing that as cash prices soar again. West Coast prices have been pushing higher most of the week on the logistic issues that area is facing. Hefty margins and strong ethanol cash prices are good for corn demand right now. Track PNW shuttle basis was stagnant, while CIF NOLA basis was steady and track St. Louis basis was 2 cents stronger. Mississippi river bids in the Iowa corridor were weaker as they need to get barges loaded and on their way this week as the winter closure there is shortly after the St. Paul District.

SOYBEANS:

The national average soybean basis for Friday is at 39 cents under the January futures, unchanged from Thursday's basis.

January soybeans closed down 2 cents and March soybeans were down 1 1/2 cents Friday, but for the week January soybeans closed up 19 cents and March soybeans were up 18 3/4 cents. Soybeans found support from the higher soybean meal prices again, while soybean oil was lower on the day following the sharply lower crude oil market. Given that China remains absent from our export market, soybean support is coming from the continued surge in soybean meal prices and strong crush margins. Cash soybean meal prices for the week on average were close to $30 per ton, while cash oil prices on average were down close to 3 cents per pound. Track PNW shuttle basis was steady to 5 cents stronger for November, while track St. Louis basis was 1 cent stronger. Barge freight is quiet and there are no bids/offers for the St. Paul District as the winter closure nears and no more barges will load there until spring.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 41 cents under the December futures, unchanged from Thursday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Friday is at 18 cents under the Kansas City December futures, 2 cents weaker than Thursday's basis. December KC wheat closed up 7 1/2 cents and for the week gained 1 3/4 cents. It appears the market is showing concern over weather issues in eastern Australia that could be hurting the quality of the new crop. U.S. wheat is still overpriced to play in the export game other than our regulars. Mills continue to snap up spot cars for their flour milling needs and also ahead of the holiday mode setting in. Spot KC ordinary proteins and 11% proteins were up 5 cents with the other proteins steady Friday.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 33 cents under the Minneapolis December futures, 4 cents weaker than Thursday'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 down 25 cents to unchanged at +115 to +140; 14.5% proteins were not quoted; 15% proteins were down 25 cents to unchanged at +135 to +160 and 16 proteins were unchanged +130N. Wheat receipts on the exchange floor were 40 cars, which included one 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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