DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 29 cents under the December futures contract while the DTN National Corn Index was up 1 cent at $3.41. The national average basis for soybeans was unchanged at 54 cents under the November futures contract while the DTN National Soybean Index was up 3 cents at $9.45. The national average basis for HRW wheat was 1 cent weaker at 27 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was up 2 cents at $4.47. The national average basis for HRS wheat was unchanged at 36 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was down 2 cents at $4.95.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.41	$0.01	-$0.29	Dec	$0.000
Soybeans:	$9.45	$0.03	-$0.54	Nov	-$0.005
SRW Wheat:	$5.15	$0.03	-$0.31	Dec	-$0.006
HRW Wheat:	$4.47	$0.02	-$0.27	Dec	-$0.005
HRS Wheat:	$4.95	-$0.02	-$0.36	Dec	$0.000

CORN:

The national average corn basis for Monday is at 29 cents under the December futures, unchanged from Friday's basis. December corn closed up 1 cent after trading in a 4-cent range on the day. It seemed like the market yawned at the fresh export sales reported by the USDA Monday morning. USDA said that private exporters sold 350,000 metric tons (mt) of corn for delivery to China during the 2020-21 marketing year and 106,000 mt of corn for delivery to Japan during the 2020-21 marketing year. Another positive bit of news is that Brazil's tariff rate quota (TRQ) has been extended for a further 90 days starting on Sept. 14 for U.S. ethanol after it expired on Aug. 31. Since that time, a 20% tariff was temporarily applied to all U.S. ethanol imports but will now cease. The basis for shuttles delivered to the Pacific Northwest remained unchanged for November forward and currently no bids are posted for 3YC like we saw over the winter. The CIF Gulf basis was 2 cents stronger for September and barge freight is steady for now. As Hurricane Sally stalls, flooding and storm surge remains a concern. American Commercial Barge Line (ACBL) said on their website that U.S. Coast Guard port conditions remain the same as Monday night, with New Orleans, Mobile, and Houma set at port condition ZULU. All traffic and barging activity on the Lower Mississippi up to Angola (LM 303) has been officially stopped.

SOYBEANS:

The national average soybean basis for Monday is at 54 cents under the November futures, unchanged from Friday's basis. November soybeans closed up 3 1/2 cents as the weekly export inspections were strong and more fresh sales of soybeans were reported. USDA said Monday morning that private exporters sold 129,000 metric tons of soybeans for delivery to China during the 2020-21 marketing year and 318,000 metric tons of soybeans for delivery to unknown destinations during the 2020-21 marketing year. Weekly export inspections noted that total inspections for the 2020-21 crop year are currently up 49% versus the same time last year. The track PNW basis was 3 cents stronger at +150X and secondary shuttle freight was higher for September. Last half September is bid at $1,000 per car above tariff and offered at $1,500 per car. This freight market continues to stay strong all the way through November. Processors in southern Minnesota and east central Iowa posted stronger bids for September and October. Once harvest starts and cash soybeans become more available, basis will likely weaken.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is at 31 cents under the December futures, 1 cent weaker than Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Monday is at 27 cents under the Kansas City December futures, 1 cent weaker than Friday's basis. The KC December futures were up 2 1/2 cents to start the week, due in part to Canada revising lower their expected all wheat harvest. Weekly export inspections are 8% higher for 2020-21 versus the same time last year. Next up will be fall planting and expectations so far are that HRW wheat acres will be up 5%. The Texas Gulf basis was 5 cents weaker and the PNW basis remains steady.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 36 cents under the Minneapolis December futures, unchanged from 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 unchanged at +80N; 13% proteins were unchanged at +80N to +100N; 13.5% proteins were unchanged at +95N to +100N; 14% proteins were up 5 cents to down 15 cents at +130*; 14.5% proteins were unchanged at +130*; 15% proteins were unchanged at +140* to +145N. Receipts were 80 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 her on Twitter @MaryCKenn

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