DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent weaker at 29 cents under the December futures contract while the DTN National Corn Index was up 5 cents at $3.43. The national average basis for soybeans was 1 cent weaker at 55 cents under the November futures contract while the DTN National Soybean Index was up 19 cents at $9.56. The national average basis for HRW wheat was unchanged at 26 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was up 7 cents at $4.49. 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 up 7 cents at $4.96.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.43	$0.05	-$0.29	Dec	-$0.007
Soybeans:	$9.56	$0.19	-$0.55	Nov	-$0.008
SRW Wheat:	$5.17	$0.04	-$0.25	Dec	$0.002
HRW Wheat:	$4.49	$0.07	-$0.26	Dec	-$0.001
HRS Wheat:	$4.96	$0.07	-$0.36	Dec	-$0.001

CORN:

The national average corn basis for Wednesday is at 29 cents under the December futures, 1 cent weaker than Tuesday's basis. December corn closed up 5 3/4 cents at midweek, finding support from the strength in soybeans and wheat Wednesday. Weekly ethanol information was a mixed bag for corn, but even as plant production was lower last week, many ethanol plants are still willing buyers of cash corn. The DTN weather factor for corn remains neutral as harvest is starting in the Eastern Corn Belt, while some of the Southern states in Tropical Storm Sally's path will be faced with heavy rains. Reports of possible crop damage in northeast China have the market thinking this could mean more U.S. corn business to China. The basis for shuttles delivered to the Pacific Northwest remains steady for November and December, while basis delivered to St. Louis was 7 cents weaker. As more export business is done at the Gulf, space could become an issue nearby as harvest nears for corn and soybeans. Also, with the hike in the cash price recently, the basis doesn't need to be a hero anymore. Ethanol plant basis is mixed, but some farmers report that plants in need of corn are paying well above posted prices to get spot cash corn to move.

SOYBEANS:

The national average soybean basis for Wednesday is at 55 cents under the November futures, 1 cent weaker than Tuesday's basis. November soybeans were sharply higher, closing up 19 3/4 cents and reaching a new contract high. USDA reported that private exporters sold 327,000 metric tons of soybeans for delivery to China during the 2020-21 marketing year, adding to the already large total of soybeans that China has purchased. Soybean meal rallied with December up $6.50 and soybean oil futures saw a strong close with December up 76 cents. Soybean oil found strength in the higher soybeans as well as the higher crude oil markets Wednesday, while Malaysian palm oil futures were closed for a public holiday. The track PNW basis was unchanged, and secondary shuttle freight remains high for the last half September through October. Basis delivered to St. Louis was 8 cents weaker as the Southern harvest nears and also due to farmer selling picking up for new crop as the flat price of soybeans has moved sharply higher since the beginning of the month. The DTN National Soybean Index is 57 cents higher on Sept. 16 versus Sept. 1.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 25 cents under the December futures, 1 cent stronger than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 26 cents under the Kansas City December futures, unchanged from Tuesday's basis. The KC December closed up 6 1/2 cents, finding strength from the higher soybean complex and the dry conditions in the Ukraine ahead of winter planting. The milling protein premiums were mixed, with 11.6% up 2 cents, 11.8% up 5 cents, 13% down 5 cents and 13.2% through 14% down 4 cents. The October Texas Gulf basis was steady and the November PNW basis for 11.5% protein was 10 cents stronger.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 36 cents under the Minneapolis December futures, unchanged from Tuesday'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 +85N; 13% proteins were unchanged at +80N to +100N; 13.5% proteins were unchanged at +95N to +100N; 14% proteins were unchanged to up 10 cents at +140 to +150; 14.5% proteins were not quoted; 15% proteins were up 45 cents to up 5 cents at +185. Receipts were 42 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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