DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 3 cents weaker at 8 cents over the December futures contract while the DTN National Corn Index was up 4 cents at $5.25. The national average basis for soybeans was unchanged at 43 cents under the November futures contract while the DTN National Soybean Index was up 15 cents at $12.43. The national average basis for HRW wheat was unchanged at 19 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was unchanged at $6.64. The national average basis for HRS wheat was 1 cent weaker at 12 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 5 cents at $8.67.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.25	$0.04	$0.08	Dec	-$0.034
Soybeans:	$12.43	$0.15	-$0.43	Nov	-$0.007
SRW Wheat:	$6.28	-$0.03	-$0.61	Dec	$0.004
HRW Wheat:	$6.64	$0.00	-$0.19	Dec	$0.005
HRS Wheat:	$8.67	$0.05	-$0.12	Dec	-$0.008

CORN:

The national average corn basis for Friday is at 8 cents over the December futures, 3 cents weaker than Thursday's basis. December corn closed up 7 1/2 cents Friday in spite of a bearish USDA report and for the week, lost 6 1/2 cents. USDA estimated corn yield at a higher than expected 176.3 bushels per acre (bpa), compared to 174.6 bpa in August. The USDA production number was also above trader expectations of a lower number from the August estimate. With the new estimate in Friday's report, that would make the second largest corn crop ever, and the yield second only to 2018's 176.6 bpa. There are still no bids or offers posted as of Friday at the Gulf, and the Pacific Northwest track shuttle basis hasn't changed from over a month ago, with bids still showing November forward and a 12-cent carry from last half November to December. River bids remain weak, but at least empty barges are making their way up from the Gulf to terminals needing them for harvest. The national average basis lost 7 cents versus one week ago.

SOYBEANS:

The national average soybean basis for Friday is at 43 cents under the November futures, unchanged from Thursday's basis. November soybeans closed up 16 cents in spite of a bearish USDA report and for the week, lost 5 1/2 cents. The USDA estimated yields and production higher than what the trade expected. Soybean yield was pegged at 50.6 bpa compared to USDA's August 50 bpa, and production moved 35 mb higher than August at 4.374 bb. Track PNW shuttle basis unchanged, while track St. Louis was 8 cents weaker. Processor basis in east central Iowa was 20 cents weaker, 10 cents weaker in southwest Iowa and 5 cents weaker in northwest Missouri. It feels like processors are ready to take basis lower once we see a good start to harvest. The national average basis lost 4 cents versus one week ago.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 61 cents under the December futures, unchanged from Thursday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Friday is at 19 cents under the Kansas City December futures, unchanged from Thursday's basis. The December KC futures were down 1/4 cent Friday but for the week lost 40 1/2 cents. As fall planting begins, the market is keeping an eye on weather in not only the Southern Plains, but the PNW and North Dakota and Montana as well. Russia is reported to be increasing their export duty on wheat to $52.5 per metric ton as of Sept. 15 from their current $46.5, which lasts until Sept. 14. Maybe it's a good sign for U.S. wheat but we are still high priced for the most part to play in that game and still rely on our regulars for exports right now. Basis at the Gulf is flat and there were no cars sold on the KC spot milling market to test the premiums.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 12 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 not quoted, 13.5% proteins were not quoted; 14% proteins were down 10 cents to up 10 cents at +90* to +110; 14.5% proteins were unchanged at +110N, 15% proteins were unchanged at +85N to +120N and 16% 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

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