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 2 cents at $3.66. The national average basis for soybeans was unchanged at 56 cents under the November futures contract while the DTN National Soybean Index was up 10 cents at $9.88. 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 1 cent at $5.05. The national average basis for HRS wheat was unchanged at 30 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 2 cents at $5.14.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.66	$0.02	-$0.25	Dec	$0.000
Soybeans:	$9.88	$0.10	-$0.56	Nov	$0.002
SRW Wheat:	$5.66	$0.00	-$0.28	Dec	$0.006
HRW Wheat:	$5.05	$0.01	-$0.26	Dec	-$0.002
HRS Wheat:	$5.14	$0.02	-$0.30	Dec	$0.003

CORN:

The national average corn basis for Tuesday is at 25 cents under the December futures, unchanged from Monday's basis. December corn gained 2 1/4 cents, recovering some of Monday's loss. Early Tuesday USDA reported that private exporters sold 110,000 metric tons of corn for delivery to Mexico during the 2020-21 marketing year. Export inspections for the week ending Oct. 8 showed total inspections in 2020-21 are up 72% from the previous year with current USDA corn export estimate for 2020-21 up 32% from the prior year. Corn harvest is moving along at a brisk pace, with USDA reporting that 41% of the U.S. corn is harvested through Oct. 11 and ahead of average for this time of year. The basis for shuttles delivered to the Pacific Northwest was 1 cent stronger for November and CIF NOLA was 5 cents stronger. Secondary shuttle freight continues higher again with BNSF last half October bid at $1,000 per car above tariff and offered at $1,400 per car. First-half November is bid at $800 per car and offered at $1,100. Domestic basis remains firm for the most part at elevators and ethanol plants, depending on who needs the corn to ship or grind.

SOYBEANS:

The national average soybean basis for Tuesday is at 56 cents under the November futures, unchanged from Monday's basis. November soybean futures turned higher Tuesday, recovering some of Monday's loss, closing up 10 1/4 cents. The slow planting in Brazil due to the current dry spell and strength in the crude oil market was supportive to soybeans. Another supportive factor was the strength in soybean meal, which was up 46 cents as palm oil futures also rallied. Soybean meal also was higher on the day, with the December up $1.70. Track PNW shuttle basis was 10 cents stronger for October and 2 to 5 cents stronger for November. The CIF GULF basis was 2 cents stronger and river basis was mixed again. The Illinois River was opened at Lagrange, leaving two locks that are still closed with scheduled opening to be Oct. 29. On the Mississippi River, low water caused another grounding north of Memphis at Caruthersville, closing the river there Tuesday evening. Processor bids have begun to back off, with southern Minnesota crushers 10 to 15 cents weaker.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Tuesday is at 28 cents under the December futures, unchanged from 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, unchanged from Monday's basis. KC December futures closed up 3 1/2 cents finding strength from a new high posted for Paris milling futures. The weekly inspection report showed that as of the week ending Oct. 8, all wheat inspections are up 10% versus the prior year. While China was a main part of the weekly total, it is interesting to note that they have also been aggressive buying French wheat. U.S. export HRW basis is flat, while CIF GULF SRW winter basis was firm given another increase in shuttle freight.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is at 30 cents under the Minneapolis December futures, 1 cent stronger than 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 not quoted; 13% proteins were unchanged to down 20 cents at +120; 13.5% proteins were unchanged at +100N to +105N; 14% proteins were unchanged at +110N to +140; 14.5% proteins were unchanged at +115* to +125N; 15% proteins were down 5 cents to unchanged at +140* to +185. Receipts were 90 cars, which included two 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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