DTN Daily Basis Comments

Wednesday 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 28 cents under the December futures contract while the DTN National Corn Index was down 3 cents at $3.38. The national average basis for soybeans was unchanged at 54 cents under the November futures contract while the DTN National Soybean Index was down 8 cents at $9.37. The national average basis for HRW wheat was 1 cent stronger at 26 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was down 5 cents at $4.42. 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 6 cents at $4.89.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $3.38 -$0.03 -$0.28 Dec $0.005
Soybeans: $9.37 -$0.08 -$0.54 Nov -$0.001
SRW Wheat: $5.13 -$0.02 -$0.26 Dec $0.050
HRW Wheat: $4.42 -$0.05 -$0.26 Dec $0.009
HRS Wheat: $4.89 -$0.06 -$0.36 Dec $0.003

CORN:

The national average corn basis for Tuesday is at 28 cents under the December futures, 1 cent stronger than Monday's basis. December corn closed down 3 1/2 cents in spite of USDA reporting Tuesday morning that private exporters sold 120,000 metric tons (mt) of corn for delivery to unknown destinations during the 2020-21 marketing year. Corn was content to follow the rest of the grains lower, in part due to a higher U.S. dollar Tuesday. Monday's weekly crop progress report offered no help either as the corn condition rating dropped to 60% good to excellent and is below average for this time of year. The shuttle basis delivered to the Pacific Northwest is still unchanged November forward and the CIF Gulf basis was 1 cent stronger, but river terminal bids have moved lower. Ethanol plant basis is still mixed and some farmers have reported that plants are paying quite a bit above posted basis for decent quantities of spot cash corn.

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SOYBEANS:

The national average soybean basis for Tuesday is at 54 cents under the November futures, unchanged from Monday's basis. The November soybeans took a break, turning lower on Tuesday and closing down 8 cents in spite of another round of fresh export sales. The USDA said Tuesday morning that private exporters sold 132,000 metric tons of soybeans for delivery to China during the 2020-21 marketing year and 132,000 metric tons of soybeans for delivery to unknown destinations during the 2020-21 marketing year. The market also didn't seem too concerned that the weekly crop report Monday afternoon showed soybean conditions declined for the fifth week in a row and was below the average for the first time during this growing season. While the market had a good start to the day, the news on the August National Oilseeds Processors Association (NOPA) soybean crush was somewhat bearish, coming at a nine month low and well below expectations. Losses in meal and oil also added pressure to soybeans along with profit taking on the day. The track PNW soybean basis remains firm at +150X for September thru November and secondary shuttle freight has not pulled back yet. September offers are still at $1,500 per car above tariff and October offers are at $1,400. Have also heard that some October offers reached $2,000. The CIF Gulf basis was 3 cents weaker on the offer side for September and 2 cents weaker in October. The southern harvest could be negatively impacted from Hurricane Sally rains and bears watching as southern beans usually feed the Gulf at this time.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Tuesday is at 26 cents under the December futures, 5 cents stronger than Monday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Tuesday is at 26 cents under the Kansas City December futures, 1 cent stronger than Monday's basis. The KC December was down 3 1/2 cents, mainly due to the weakness in corn and lack of fresh news. There is a good list of export tenders currently, but the U.S. will not likely be a part of the bigger ones. The Texas Gulf basis for HRW wheat is steady, but soft red winter wheat CIF basis dropped 8 to 16 cents according to traders.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is at 36 cents under the Minneapolis December futures, unchanged from Monday'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 up 5 cents at +85; 13% proteins were unchanged at +80N to +100N; 13.5% proteins were unchanged at +95N to +100N; 14% proteins were up 10 cents at +140*; 14.5% proteins were unchanged at +130N; 15% proteins were unchanged to up 35 cents at +140N to +180. Receipts were 30 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 her on Twitter @MaryCKenn

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Mary Kennedy

Mary Kennedy
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