DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 2 cents stronger at 44 cents under the December futures contract while the DTN National Corn Index was up 5 cents at $3.24. The national average basis for soybeans was 2 cents weaker at 97 cents under the November futures contract and the DTN National Soybean Index was down 1 cent at $7.47. The national average basis for HRW wheat was 3 cents stronger at 42 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was down 13 cents at $4.95. The national average basis for HRS wheat was 1 cent stronger at 62 cents under the December futures contract, while the DTN National Hard Red Spring Wheat Index was down 13 cents at $5.23.

DAILY BASIS CHART:

	DTN Cash	Change From	National		Contract	Change from
Commodity	Index	Prev Day	Avg. Basis		Month	Prev Day
Corn:	$3.24	$0.05	-$0.44		Dec	$0.017
Soybeans:	$7.47	-$0.01	-$0.97		Nov	-$0.018
SRW Wheat:	$4.83	-$0.10	-$0.49		Dec	$0.038
HRW Wheat:	$4.95	-$0.13	-$0.42		Dec	$0.029
HRS Wheat:	$5.23	-$0.13	-$0.62		Dec	$0.010

CORN:

The DTN National Corn Index for Tuesday indicated a national average basis of 44 cents under the Chicago December futures contract, 2 cents stronger than Friday's basis. The corn market started the short week higher as heavy rains in the Midwest have been nonstop with flash flooding occurring in southeast and south central Minnesota into southern Wisconsin along with heavy rain from Gordon hitting parts of the Delta. Weekly corn inspections showed a bearish finish to the 2017-18 crop year. Ethanol plant basis was firm and river basis was mixed. Continued rains in the Upper Mississippi area and down south have made bids for barges hard to find on all river segments for the spot market. The Gulf was in "tie-down mode" as tropical storm Gordon approached.

SOYBEANS:

The DTN National Soybean Index for Tuesday indicated a national average basis of 97 cents under the Chicago November futures contract, 2 cents weaker than Friday's basis. Soybeans were slightly higher Friday to start the week with heavy rain in the central Midwest causing concern for areas where soybeans were close to harvest, including heavy rains from Tropical Storm Gordon hitting Alabama and moving inland. Weekly inspections for soybeans for the week ending August 30 came in above the total for the same week one year ago and overall ended with a neutral finish to the 2017-18 crop year. Basis is still under pressure as elevators in the Upper Midwest especially, push bids lower without the PNW market to turn to, especially with harvest approaching. It remains to be seen what will happen at harvest if elevators fill up and farmers have no space left at home.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Tuesday indicated a national average basis of 49 cents under the Chicago December futures, 4 cents stronger than Friday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter Wheat Index for Tuesday indicated a national average basis of 42 cents under the Kansas City December futures contract, 3 cents stronger than Friday's basis. The cash price pushed lower after Russia's Agricultural Ministry announced in a meeting Monday that they saw no reason to curb exports or add an export tax at this time. However, this is typical for Russia not to show their hand until the last minute, so this saga is not over by any means. Basis is still recovering from the Sept to Dec roll, but should recover as we head in to a likely slowdown in movement as farmers head back in to the fields to ready for fall planting.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Tuesday indicated a national average basis of 62 cents under the Minneapolis December futures contract, 1 cent stronger than Friday'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 unchanged at +60N to +85N; 13.5% proteins were unchanged at +60N to +75N; 14% proteins were down 25 cents at +55*. 14.5% proteins were unchanged at +55N to +70N and 15% proteins were unchanged at +95N. Receipts were 26 cars, which included one train*. (Bid=B Ask=A Nominal=N) Wheat on the MGEX floor is traded delivered Chicago/beyond.

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

Follow Mary Kennedy on Twitter @MaryCKenn

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