DTN Daily Basis Comments
Monday Morning Basis Update
The national average basis for corn was unchanged at 40 cents under the December futures contract while the DTN National Corn Index was 2 cents weaker at $3.04. The national average basis for soybeans was 1 cent stronger at 80 cents under the January futures contract while the DTN National Soybean Index was up 3 cents at $9.07. The national average basis for HRW wheat was 1 cent weaker at 60 cents under the December futures contract, and the DTN National Hard Red Winter Wheat Index was up 3 cents at $3.74. The national average basis for HRS wheat was unchanged at 29 cents under the December future contract and the DTN National Hard Red Spring Wheat Index was unchanged at $6.19.
DAILY BASIS CHART:
| DTN Cash | Change From | National | Contract | Change from | |
| Commodity | Index | Prev Day | Avg. Basis | Month | Prev Day |
| Corn: | $3.04 | $0.02 | -$0.40 | Dec | $0.003 |
| Soybeans: | $9.07 | $0.03 | -$0.80 | Jan | $0.008 |
| SRW Wheat: | $3.97 | $0.03 | -$0.34 | Dec | $0.001 |
| HRW Wheat: | $3.74 | $0.03 | -$0.60 | Dec | -$0.009 |
| HRS Wheat: | $6.19 | $0.00 | -$0.29 | Dec | $0.004 |
The DTN National Corn Index for Friday indicated a national average basis of 40 cents under the Chicago December futures contract, unchanged from Thursday's basis. The corn market had a slight change of heart, closing higher Friday after Thursday's USDA report sent the market lower. USDA estimated a record high 175.4 bushels per acre yield in its Nov. 9 Crop Production report, pushing corn prices lower Thursday and causing the December contract to lose nearly 5 cents for the week. For the week, December corn was down 4 3/4 cents and the DTN national average basis was up 1 cent from one week ago Friday. Overall, basis remains firm as the cash price took a beating the past week and farmer selling remains slow.
SOYBEANS:The DTN National Soybean Index for Friday indicated a national average basis of 80 cents under the Chicago January futures contract, 1 cent stronger than Thursday's basis. Soybeans recovered some of their losses from Thursday after they overreacted to the USDA report. In the end, there wasn't that much change in in the yield forecast from last month nor was it much higher from the trade estimate. Now the market turns its attention to the weather in Brazil with DTN's latest forecast noting an improvement in the rainfall pattern for planting as well as developing soybeans in central Brazil after earlier hot, dry weather. For the week, January soybeans ended slightly higher, up 1/4 cent and the DTN national average basis was up 4 cents from one week ago Friday. A few processors in the upper Midwest pushed soybean bids where farmers are still harvesting. CIF Gulf soybean basis was up 4 cents as issues along the U.S. River system continue, slowing availability of empty barges. The hot spot continues to be Lock 52 on the Ohio River. The USACE reported Friday that the navigation pass remained open during daylight hours only for all navigation traffic southbound and all light boat northbound. The USACE expects to reevaluate the restrictions by Nov. 13.
SOFT RED WINTER WHEAT:The DTN National Soft Red Winter Wheat Index for Friday indicated a national average basis of 34 cents under the Chicago December futures, 1 cent stronger than Thursday's basis.
HARD RED WINTER WHEAT:The DTN National Hard Red Winter Wheat Index for Friday indicated a national average basis of 60 cents under the Kansas City December futures contract, 1 cent weaker than Thursday's basis. The KC spot protein premiums saw their first loss in weeks after mills started to plug up and Gulf basis fizzled out. Premiums are still firm given the recent rise, but prices will depend on what mills need next and any new export business. For the week, the December futures gained 6 1/2 cents and the DTN national average basis was up 1 cent from one week ago Friday.
The DTN National Hard Red Spring Wheat Index for Friday indicated a national average basis of 29 cents under the Minneapolis December futures contract, unchanged from Thursday'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 not quoted; 14% proteins were down 5 cents to up 5 cents at +120 to +155; 14.5% proteins were unchanged at +130 and 15% proteins were unchanged at +181N to +188N. Receipts were 59 cars, which included one trains*. (Bid=B Ask=A) Wheat on the MGEX floor is traded delivered Chicago/beyond. For the week, the DTN national average basis was up 2 cents from one week ago Friday and December futures gained 22 3/4 cents, giving a boost to the cash price.
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow Mary Kennedy on Twitter @MaryCKenn
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