DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 18 cents under the December futures contract while the DTN National Corn Index was up 7 cents at $3.98. The national average basis for soybeans was unchanged at 51 cents under the January futures contract while the DTN National Soybean Index was up 6 cents at $11.02. 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 6 cents at $5.32. The national average basis for HRS wheat was unchanged at 25 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was unchanged at $5.30.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.98	$0.07	-$0.18	Dec	$0.010
Soybeans:	$11.02	$0.06	-$0.51	Jan	$0.003
SRW Wheat:	$5.70	$0.06	-$0.28	Dec	$0.013
HRW Wheat:	$5.32	$0.06	-$0.26	Dec	$0.000
HRS Wheat:	$5.30	$0.00	-$0.25	Dec	$0.003

CORN:

The national average corn basis for Monday is at 18 cents under the December futures, 1 cent stronger than Friday's basis. December corn closed up 5 3/4 cents, finding support in the weak U.S. dollar and dry weather in key areas of South America. DTN Senior Ag Meteorologist Bryce Anderson reported there was not much precipitation for Brazil and less than .50 in most prime row-crop areas over the weekend. There were some 2-plus inch rains in Goias and Minas Gerais, but for Mato Grosso and Mato Grosso do Sul along with Parana and Rio Grande do Sul, there was no more than a 1/2 inch in three days. Weekly export inspections were also supportive to the market with 2020-21 corn inspections up 74% from the prior year. Rumors of China perhaps buying more U.S. corn also caught the market's attention. The track Pacific Northwest shuttle basis and CIF NOLA basis was steady to start the week. Secondary shuttle freight remains bid at par for December on the BNSF and $50 per car above tariff on the UP versus offers of $150 to $250. Basis in the Upper Mississippi River is stronger as terminals prepare to load out fall commitments ahead of the winter closure.

SOYBEANS:

The national average soybean basis for Monday is at 51 cents under the January futures, unchanged from Friday's basis. January soybeans were up 5 1/2 cents, finding support from strength in the soybean oil and crude oil markets on renewed optimism for a successful coronavirus vaccine. Helping the market was the October NOPA crush results showing a record high October crush, up 9.9 million bushels (mb) above one year ago and 23.8 mb up from the September crush. December soybean oil was up 30 cents and meal was up $1.30. Monday's weekly inspection report showed soybean inspections up 78% from the prior year. The track PNW shuttle basis is steady, while CIF NOLA was 1 cent weaker. American Commercial Barge Line noted that as of Nov. 17, the majority of traffic is cleared near MM 719 where dredging had been taking place. However, the Lower Mississippi River is seeing heavy congestion at fleets and on the river, leading to expected increased transit both north and southbound for the next several days. Barge freight prices have come down given the availability of barges expected in the next week as the Gulf continues to load out soybeans. The PNW continues to be busy loading out soybeans with about 21 vessels and 7 soybean meal vessels in queue.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is at 28 cents under the December futures, 1 cent stronger than Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Monday is at 26 cents under the Kansas City December futures, unchanged from Friday's basis. The KC December closed up 5 cents, getting support from the higher corn market. Weekly inspections came in under trade expectations and currently, HRW wheat is pretty equal to the current USDA estimated pace. There were no cars for sale on the KC spot market, but demand for milling wheat is picking up ahead of the holiday baking season.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 25 cents under the Minneapolis December futures, unchanged from Friday'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 unchanged at +135N; 14% proteins were up 5 cents to unchanged at +130* to +135N; 14.5% proteins were unchanged at +100N to +115N; 15% proteins were unchanged at +120 to +160A*. Receipts were 52 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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