DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 19 cents under the December futures contract while the DTN National Corn Index was up 4 cents at $3.90. The national average basis for soybeans was 1 cent weaker at 51 cents under the January futures contract while the DTN National Soybean Index was up 17 cents at $10.53. 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 4 cents at $5.37. The national average basis for HRS wheat was unchanged at 26 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 4 cents at $5.35.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.90	$0.04	-$0.19	Dec	-$0.004
Soybeans:	$10.53	$0.17	-$0.51	Jan	-$0.005
SRW Wheat:	$5.80	$0.03	-$0.30	Dec	$0.002
HRW Wheat:	$5.37	$0.04	-$0.26	Dec	$0.003
HRS Wheat:	$5.35	$0.04	-$0.26	Dec	$0.003

CORN:

The national average corn basis for Thursday is at 19 cents under the December futures, unchanged from Wednesday's basis. December corn continued higher again up 4 cents as exports continue to be supportive to the market. The weekly export sales and shipments report showed that, for the week ended Oct. 29, USDA reported an increase of 102.8 million bushels (mb) (2,610,900 metric tons) of corn export sales and an increase of 21.3 mb (541,000 mt) for 2021-22. While shipments last week were below what is needed each week to reach USDA estimate, there is still plenty of corn left to ship and that is apparent in the export commitments now up 179% versus one year ago. Dry weather in southern Brazil and Argentina continues to add underlying support to the U.S. corn market. The basis for shuttles delivered to the PNW was 6 cents weaker for last period November and 5 cents weaker for December, while CIF NOLA basis was steady. Secondary shuttle freight was unchanged for November, with offers rising in December at $1000 per car over tariff against bids of $600 per car.

SOYBEANS:

The national average soybean basis for Thursday is at 51 cents under the January futures, 1 cent weaker than Wednesday's basis. January soybeans close dup 17 3/4 cents Thursday, reaching a four-year high. Strong export sales and ongoing dry weather in some of the key areas in South America continue to support the market. In addition, strong crush margins and sharply higher soybean oil futures, up $1.05, is adding strength to the complex. In addition, a fresh private sale of 33,000 mt of soybean oil for delivery to India during the 2020-21 marketing year was supportive to the bean oil market Thursday. With U.S. soybean oil rising to a three-year high, that added strength to global vegetable oil prices as well. The track PNW shuttle basis was unchanged, while rail delivered to St. Louis was 6 cents stronger and CIF NOLA was steady. Barge lines report that due to the slow movement of empties getting to the northern river terminals, some elevators had shut down until barges arrive. Barge freight in the Upper and Middle Mississippi is still high and some terminals have posted sharply lower basis due to the high prices or their inability to load out for now.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Thursday is at 30 cents under the December futures, unchanged from 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. The KC December futures were up 3 1/4 cents, finding support from the strength in corn and soybean markets. Good export sales reported Thursday with HRW wheat on top and strength in Paris futures also added support to wheat. Basis was quiet again with domestic and export basis unchanged. Recent large tenders from Egypt (they bought all Russian) and a fresh Saudi tender has the U.S. once again watching form the sidelines.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Thursday is at 26 cents under the Minneapolis December futures, unchanged from 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 not quoted; 13% proteins were unchanged not quoted; 13.5% proteins were not quoted; 14% proteins were up 10 cents at +140; 14.5% proteins were unchanged at +105N to +145N; 15% proteins were unchanged to up 35 cents to unchanged at +160 to +170B. Receipts were 12 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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