DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 41 cents under the December futures contract while the DTN National Corn Index was up 1 cent at $3.29. The national average basis for soybeans was unchanged at $1.00 under the November futures contract while the DTN National Soybean Index was down 1 cent at $7.57. The national average basis for HRW wheat was unchanged at 36 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was unchanged at $4.71. The national average basis for HRS wheat was 1 cent stronger at 54 cents under the December futures contract, while the DTN National Hard Red Spring Wheat Index was up 1 cent at $5.31.

DAILY BASIS CHART:

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.29	$0.01	-$0.41	Dec	$0.004
Soybeans:	$7.57	-$0.01	-$1.00	Nov	-$0.003
SRW Wheat:	$4.71	$0.02	-$0.38	Dec	$0.010
HRW Wheat:	$4.71	$0.00	-$0.36	Dec	$0.002
HRS Wheat:	$5.31	$0.01	-$0.54	Dec	$0.011

CORN:

The DTN National Corn Index for Tuesday indicated a national average basis of 42 cents under the Chicago December futures contract, unchanged from Monday's basis. The corn market ended the day slightly higher, unsure which direction to take. There was some support from new business, with Informa Economics noting that reports indicated South Korea's Nonghyup Feed Inc. (NOFI) bought 70,000 metric tons (mt) of corn in a private deal on Tuesday and is expected to be sourced from the U.S. or South America. Corn basis was stronger at Midwest ethanol plants, but river basis was weaker as the Upper Mississippi River is not 100% open with one lock scheduled to open Tuesday or Wednesday, which will then be clear sailing for barges. However, the St. Louis Harbor is still at 27.3 feet and until it reached below 25 feet, reduced tow sizes and daylight only passage remains in place.

SOYBEANS:

The DTN National Soybean Index for Tuesday indicated a national average basis of $1.00 under the Chicago November futures contract, unchanged from Monday's basis. Soybeans were lower Tuesday as export prospects remain slim for the U.S. market share. Adding to that, is continued reports of soybean rejections at the U.S. Gulf as damaged soybeans from the south made it on barges, with added concerns soybeans in parts of the Midwest that would go to the river are also facing quality problems. Basis remains mixed, with processors bidding higher for spot sales and basis at the Gulf remains firm for good quality beans.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Tuesday indicated a national average basis of 38 cents under the Chicago December futures, unchanged from Monday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter Wheat Index for Tuesday indicated a national average basis of 36 cents under the Kansas City December futures contract, 1 cent stronger than Monday's basis. The cash price did little Tuesday as U.S. wheat struggles to compete in the export market. The only thing traded on the KC spot market was 14% protein, which was 5 cents stronger. Mills have been covering nearby needs, but overall, this market is nothing to cheer about.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Tuesday indicated a national average basis of 55 cents under the Minneapolis December futures contract, 1 cent stronger than 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 up 5 cents at +85; 14% proteins were up 5 cents to up 10 cents at +80B* to +85*; 14.5% proteins were not quoted; and 15% proteins were unchanged at +95N to +115N. Receipts were 78 cars, which included three trains. (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

(BE)

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