DTN Daily Basis Comments

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 up 4 cents at $3.47. The national average basis for soybeans was unchanged at 55 cents under the November futures contract while the DTN National Soybean Index was up 17 cents at $9.73. 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 12 cents at $4.61. The national average basis for HRS wheat was 1 cent stronger at 35 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 10 cents at $5.06.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.47	$0.04	-$0.28	Dec	$0.004
Soybeans:	$9.73	$0.17	-$0.55	Nov	-$0.004
SRW Wheat:	$5.30	$0.13	-$0.26	Dec	-$0.008
HRW Wheat:	$4.61	$0.12	-$0.26	Dec	-$0.004
HRS Wheat:	$5.06	$0.10	-$0.35	Dec	$0.003

CORN:

The national average corn basis for Thursday is at 28 cents under the December futures, 1 cent stronger than Wednesday's basis.

December corn closed up 3 1/2 cents at $3.75 1/4 Thursday, reaching a new 6-month high. After the weekly export sales and shipments (WESS) report, USDA reported a private sale of 120,000 metric tons (mt) of corn for delivery to unknown destinations during the 2020-21 marketing year. The WESS report noted that while shipments came in below what is needed each week to reach USDA's forecast, corn export commitments in 2020-21 are up 136% from a year ago. While the corn market found strength in the wheat and soybean market, the basis is remaining strong as corn harvest is still not in full swing yet and end users need spot corn. There is already talk of free delayed price contracts in some areas along with a break in corn drying charges. The domestic and export basis remains strong even as harvest approaches. The PNW and Gulf basis levels are firm and ethanol plants and other end users are playing "name your price" in order to get spot cash corn to market.

SOYBEANS:

The national average soybean basis for Thursday is at 55 cents under the November futures, unchanged from Wednesday's basis. November soybean futures posted another strong close Thursday, up 17 1/4 cents as demand continues to push the market higher. Thursday morning USDA said private exporters sold 264,000 mt of soybeans for delivery to China during the 2020/2021 marketing year and 360,500 mt of soybeans for delivery to unknown destinations during the 2020/2021 marketing year. In addition, the strength in soybean meal added support with December up $9.60. The soybean cash price continues to surge higher on the fresh export demand but also in the domestic market as the southern soybean harvest has been dragging along. CIF NOLA basis was 2 cents stronger and the track PNW shuttle basis was 5 cents stronger. Secondary shuttle freight has blown up again with returns and first-half September bid at $1,200 per car over tariff and offered at $1,500 per car and first-half October is bid $1,500 per car and offered at $1.800. Barge freight woke up and is beginning to move higher as well.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Thursday is at 26 cents under the December futures, 1 cent weaker than Wednesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Thursday is at 26 cents under the Kansas City December futures, unchanged from Wednesday's basis. Strength in the soybeans and corn helped give the KC December a boost Thursday, along with talk of Chinese business. Futures were up 12 1/2 cents, giving the cash price a boost. Global wheat prices have been moving higher, but U.S. wheat is still expensive at these levels. A lot is riding on the dry situation in Russia and how it will affect their fall planting.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Thursday is at 35 cents under the Minneapolis December futures, 1 cent stronger than Wednesday'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 not quoted; 13.5% proteins were not quoted; 14% proteins were up 10 cents to unchanged at +150; 14.5% proteins were not quoted; 15% proteins were down 10 cents at +175. Receipts were 13 cars, which included zero 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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