DTN Daily Basis Comments

Tuesday 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 1 cent stronger at 14 cents under the December futures contract and the DTN National Corn Index was unchanged at $3.40. The national average basis for soybeans was 1 cent weaker at 84 cents under the November futures contract while the DTN National Soybean Index was down 1 cent at $7.74. The national average basis for HRW wheat was 1 cent weaker at 34 cents under the December futures contract, while the DTN National Hard Red Winter Wheat Index was up 4 cents at $3.64. The national average basis for HRS wheat was 2 cents stronger at 62 cents under the December futures contract, while the DTN National Hard Red Spring Wheat Index was up 5 cents at $4.35.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $3.40 $0.00 -$0.14 Dec $0.009
Soybeans: $7.74 -$0.01 -$0.84 Nov -$0.010
SRW Wheat: $4.50 $0.04 -$0.25 Dec -$0.067
HRW Wheat: $3.64 $0.04 -$0.34 Dec -$0.006
HRS Wheat: $4.35 $0.05 -$0.62 Dec $0.024

CORN:

The DTN National Corn Index for Monday indicated a national average basis of 14 cents under the Chicago December futures contract, 1 cent stronger than Friday's basis. December corn closed lower to start the week, down 1 1/4 cents as it was unable to find any momentum from the strength in the wheat markets. Nor was corn able to find strength from the USDA announcing a private sale of 590,820 metric tons of corn to Mexico for delivery during the 2019-20 marketing year and 60,850 tons for delivery during the 2020-21 marketing year. The bearish news for the day was weekly export inspections for the week ending Sept. 5 showing current 2019-20 total down 34% versus one year ago. The basis for shuttles delivered to the Pacific Northwest is steady, while rail to St. Louis basis was 1 cent stronger. Ethanol plant basis was stronger with central Iowa and southwestern Minnesota 2 cents stronger, east central Iowa 5 cents stronger, central Iowa and south central Nebraska 1 cent stronger and east central Nebraska 8 cents stronger. Plant margins are steady for now as the cash market has been mixed the past week and ethanol futures have been steady.

SOYBEANS:

The DTN National Soybean Index for Monday indicated a national average basis of 84 cents under the Chicago November futures contract, 1 cent weaker than Friday's basis. Soybeans were lower during the session, hitting a new three-month low but did manage to close unchanged to end the day. Weekly export inspections for the start of the new crop year were bearish and showed total 2019-20 inspections down 40% versus one year ago. The weather forecast for the next 10 days is beneficial for late-planted soybeans currently needing more time to finish maturing. The shuttle basis for delivery to the PNW remains under pressure due to lack of China business and CIF NOLA basis was 3 cents weaker. Processor basis has been steady and plants needing beans to crush will push basis until they are covered. Otherwise, that market has been pretty quiet.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter (SRW) Wheat Index for Monday indicated a national average basis of 25 cents under the Chicago December futures, 7 cents weaker than Friday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter (HRW) Wheat Index for Monday indicated a national average basis of 34 cents under the Kansas City December futures contract, 1 cent weaker than Friday's basis. Futures were higher to start the week as they found support in Australian Bureau of Agricultural and Research Economics and Sciences lowering their wheat production estimate to 19.1 million metric tons (mmt), down from the current USDA forecast of 21 mmt. Weather conditions there continue to be dry and some traders believe that number will move lower. The KC spot protein premium for ords was 1 cent stronger and the 11.4% premium was 27 cents stronger as mills became willing buyers on the cars that showed for sale Monday.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring (HRS) Wheat Index for Monday indicated a national average basis of 62 cents under the Minneapolis December futures contract, 2 cents stronger than Friday's basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis December futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were unchanged at +70N; 13.5% proteins were unchanged at +80* to +85*; 14% proteins were unchanged to down 15 cents at +80* to +85*; 14.5% proteins were unchanged at +75*; 15% proteins were down 5 cents to down 45 cents at +70B. Receipts were 216 cars, which included seven 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

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Mary Kennedy

Mary Kennedy
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