DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 25 cents under the December futures contract while the DTN National Corn Index was up 8 cents at $3.70. The national average basis for soybeans was unchanged at 56 cents under the November futures contract while the DTN National Soybean Index was up 15 cents at $10.09. 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 $5.09. The national average basis for HRS wheat was 1 cent weaker at 31 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 1 cent at $5.13.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.70	$0.08	-$0.25	Dec	$0.001
Soybeans:	$10.09	$0.15	-$0.56	Nov	-$0.006
SRW Wheat:	$5.66	-$0.01	-$0.28	Dec	$0.002
HRW Wheat:	$5.09	$0.07	-$0.26	Dec	-$0.001
HRS Wheat:	$5.13	$0.01	-$0.31	Dec	-$0.004

CORN:

The national average corn basis for Friday is at 25 cents under the December futures, unchanged from Thursday's basis. December corn closed up 8 cents Friday after a bullish USDA report and for the week, gained 15 1/4 cents. USDA, in its Oct. 9 report, lowered its estimate of 2020-21 U.S. ending corn stocks from 2.503 billion bushels (bb) to 2.167 bb. USDA also estimated a corn crop yield of 178.4 bushels per acre (bpa). In addition, both ethanol and feed demand were reduced by 50 million bushels each. As far as ethanol plant demand, only 75% of the rated capacity is in use right now, as at least 40 plants have yet to come back online. However, corn demand remains firm despite the high cash price as cash ethanol prices are steady to higher and DDG prices, a byproduct of ethanol crush, has surged higher this week on good export demand. The basis for shuttles delivered to the Pacific Northwest was steady at +109X for November, CIF Gulf basis was unchanged, and rail delivered to St. Louis was 5 cents weaker. Ethanol plant basis remains steady, and plants that need spot corn are still paying above posted prices. Other incentives include free delayed price contracts.

SOYBEANS:

The national average soybean basis for Friday is at 56 cents under the November futures, unchanged from Thursday's basis. November soybeans closed up 15 1/2 cents Friday and posted a hefty gain of 44 3/4 cents for the week. Friday's support came from USDA reducing its 2020-21 estimate of U.S. ending soybean stocks from 460 million bushels to 290 mb, much less than trade expectations and the lowest in five years. USDA left their soybean yield unchanged from last month's report at 51.9 bushels per acre. December soybean meal closed up $4.10 and soybean oil was up $1.01, notching a 7.4% gain for the week. The track PNW shuttle basis was unchanged +125X, and CIF NOLA basis was 4 cents stronger. Basis levels on the river were a mixed bag, and barge freight on the Upper Mississippi and Illinois rivers was trading at 600% or more of tariff as harvest has been moving at a brisk pace. The New Orleans Gulf was spared the brunt of Hurricane Delta and is now operating at normal conditions, except for some fog and wind delays that are expected to dissipate.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 28 cents under the December futures, unchanged from Thursday's basis.

HARD RED WINTER WHEAT

The national average HRW wheat basis for Friday is at 26 cents under the Kansas City December futures, unchanged from Thursday's basis. The KC December futures closed up 6 3/4 cents and for the week gained 26 cents. Friday's market once again found strength in the extremely dry conditions in some key areas of the U.S. HRW wheat belt. The spot KC basis was weaker as mills backed off on paying higher prices, with 12.4% through 14% proteins down 5 cents. The Texas Gulf and PNW basis was unchanged after weakening earlier in the week.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 31 cents under the Minneapolis December futures, 1 cent weaker than Thursday'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 at +120*; 13.5% proteins were not quoted; 14% proteins were unchanged to down 30 cents at +115B* to +125A*; 14.5% proteins were down 10 cents to down 5 cents at +120* to +125* and 15% proteins were unchanged at +145N to +185. Receipts were 170 cars, which included five 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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