DTN Daily Basis Comments

Christmas Eve Morning Basis Update

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 15 cents under the March futures contract while the DTN National Corn Index was up 4 cents at $4.33. The national average basis for soybeans was unchanged at 44 cents under the January futures contract while the DTN National Soybean Index was up 11 cents at $12.15. The national average basis for HRW wheat was 1 cent stronger at 26 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index was up 9 cents at $5.62. The national average basis for HRS wheat was unchanged at 26 cents under the March futures contract while the DTN National Hard Red Spring Wheat Index was up 8 cents at $5.54.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $4.33 $0.04 -$0.15 Mar $0.002
Soybeans: $12.15 $0.11 -$0.44 Jan -$0.002
SRW Wheat: $6.09 $0.13 -$0.20 Mar $0.001
HRW Wheat: $5.62 $0.09 -$0.26 Mar $0.006
HRS Wheat: $5.54 $0.08 -$0.26 Mar -$0.001

CORN:

The national average corn basis for Wednesday is at 15 cents under the March futures, unchanged from Tuesday's basis. March corn closed up 3 3/4 cents at $4.47, another new contract high. Weekly export sales and shipments were released a day early because of the government's Dec. 24 holiday, showing that 2020-21 total export commitments through Dec. 17 are up 137% versus one year ago. The weekly EIA showing an increase in plant production last week is good for corn demand... if anyone is willing to se1l it right now. Add to that, DDG prices have been firm due to supply tightness and the continuing uptick in soybean meal prices. Track PNW basis was steady, while track St. Louis was 3 cents stronger. Ethanol plant basis was steady on average, but plants needing spot corn are paying up.

SOYBEANS:

The national average soybean basis for Wednesday is at 44 cents under the January futures, unchanged from Tuesday's basis. January soybeans closed up 11 1/4 cents as the market is still finding support from the ongoing port strike in Argentina, with the market thinking the U.S. may need to cover some of the exports unable to leave the ports. According to the MercoPress, since last week no soybean trucks have entered terminals at the country's main grains hub of Rosario, from which about 80% of Argentina's farm exports are shipped. Argentina's CIARA-CEC export companies chamber said more than 100 cargo ships have been unable to load during the strike. Other soybean products rallied as well with January meal up $6.20 and soybean oil up 80 cents. The weekly export sales and shipment report for the week ended Dec. 17 put total commitments for 2020-21 up 86% versus one year ago. Track PNW shuttle basis was steady, with CIF GULF basis unchanged. Basis has entered into official "holiday mode" but processor basis remains firm as crush margins stay strong. Not much is happening along the river system, but water levels at St. Louis are heading lower and the latest NOAA forecast points to the river there going below zero gauge on Dec. 27 and staying there at least through Jan. 7. Safety protocols will likely be put in place to avoid groundings.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 20 cents under the March futures, unchanged from Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 26 cents under the Kansas City March futures, 1 cent stronger than Tuesday's basis. KC March closed up 8 3/4 cents as continued weakness in the U.S. dollar and higher corn prices gave the market support. In addition, cash prices remain firm, especially for lower proteins, as farmers have become slow sellers. Export values are steady and soft white wheat still remains the cheapest wheat and HRW wheat the most expensive.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 26 cents under the Minneapolis March futures, unchanged from Tuesday's basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis March futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were not quoted; 14% proteins were up 25 cents to up 5 cents at +130*; 14.5% proteins were at +120; 15% proteins were not quoted. Receipts were 30 cars, which included one train(s). (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

Mary Kennedy

Mary Kennedy
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