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The DTN National Corn Index for Tuesday indicated a national average basis of 45 cents under the Chicago December futures contract, unchanged from Monday's basis. The corn market was taken by surprise with the USDA reporting a new estimate for corn yields of 169.9 bushels per acre, vs. trade expectations that USDA would lower yields to 168.2 bpa. While the market did close lower, it was able to come up from its lowest point of the day of $3.45 1/2. Basis is steady for the most part at ethanol plants and river basis is still feeling weak. The CIF Gulf basis was 1 cent weaker at +17Z. Basis will eventually need to step up its game if the cash price continues to fall and end users need corn.SOYBEANS:
The DTN National Soybean Index for Tuesday indicated a national average basis of 66 cents under the Chicago November futures contract, 1 cent weaker than Monday's basis. Soybeans fell apart shortly after the USDA report showed a higher production forecast at a record 4,431 million bushels, based on their yield forecast of 49.9 bushels per acre. However, as the day wore on, soybeans were able to come up from their lowest point of the day of $9.37 1/2. Basis is still a mixed bag at processing plants as harvest approaches. Some plants will still pay up for spot purchases if they need it, put there are no pushes in late September forward. River terminal basis is weaker as lock delays at various locks on the Ohio, Tennessee and Illinois rivers are causing long transit delays. The Ohio River is closed at Locks and Dam 52 at Brookport, Illinois due to problems raising the wickets at the dam. The repairs are expected to be completed by Sept. 17 if all goes well.SOFT RED WINTER WHEAT:
The DTN National Soft Red Winter Wheat Index for Tuesday indicated a national average basis of 45 cents under the Chicago December futures, 1 cent stronger than Monday's basis.HARD RED WINTER WHEAT:
The DTN National Hard Red Winter Wheat Index for Tuesday indicated a national average basis of 82 cents under the Kansas City December futures contract, 1 cent stronger than Monday's basis. The spot KC market was quiet Tuesday after the recent flurry of spot cars for sale the past week. The cash price gained strength, but overall the market remains firm thanks to mills. On the export side, shipments are resuming to the Texas Gulf, but transportation issues created by Harvey are still not 100% fixed.HARD RED SPRING WHEAT:
The DTN National Hard Red Spring Wheat Index for Tuesday indicated a national average basis of 51 cents under the Minneapolis December futures contract, unchanged from Monday's basis. The Minneapolis spot HRS wheat cash market closed as follows, basis the Minneapolis December futures contract for #1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were unchanged to down 10 cents at +40N to +50; 14% proteins were down 5 cents at +75 to +80*; 14.5% proteins were not quoted and 15% proteins were unchanged at +100* to +115. Receipts were 134 cars, which included three trains*. (Bid=B Ask=A) Wheat on the MGEX floor is traded delivered Chicago/beyond.
Mary Kennedy can be reached at firstname.lastname@example.org
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