DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 4 cents weaker at 4 cents over the December futures contract while the DTN National Corn Index was down 8 cents at $5.17. The national average basis for soybeans was 2 cents weaker at 45 cents under the November futures contract while the DTN National Soybean Index was down 4 cents at $12.40. 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 up 3 cents at $6.67. The national average basis for HRS wheat was unchanged at 12 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was down 2 cents at $8.64.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.17	-$0.08	$0.04	Dec	-$0.042
Soybeans:	$12.40	-$0.04	-$0.45	Nov	-$0.018
SRW Wheat:	$6.27	-$0.01	-$0.60	Dec	$0.003
HRW Wheat:	$6.67	$0.03	-$0.19	Dec	-$0.006
HRS Wheat:	$8.64	-$0.02	-$0.12	Dec	$0.004

CORN:

The national average corn basis for Monday is at 4 cents over the December futures, 4 cents weaker than Friday's basis. December corn started the week lower, down 4 1/4 cents, as the market took note of the bearish USDA report on Friday. Weekly corn inspections for the week ended Sept. 9 and for the first nine days of the new-crop year, totaled 5.4 million bushels (mb). Total inspections for the new-crop year 2021-22 are currently down 85% from the previous year. It's no surprise inspections were so low last week given that most of the export terminals were unable to load out as they waited for power to come back after Hurricane Ida. While the Mississippi River opened Sept. 4, most of the barge movement is making its way through the debris as it heads up river, while downbound loaded barge movement has been scarce since Ida hit. Track PNW shuttle basis was unchanged for November, but December was 2 cents stronger at +142Z. CIF Gulf basis bids are being posted again for October forward as expectations are Gulf terminals will be back to running by the end of September. Some companies have started midstream loadings, which is barges offloading onto waiting ships in the middle of the river. Domestic basis is feeling the pressure from the start of corn harvest.

SOYBEANS:

The national average soybean basis for Monday is at 45 cents under the November futures, 2 cents weaker than Friday's basis. November soybeans closed down 1 3/4 cents Monday, still feeling the bearish USDA report from Friday. In addition, the slow recovery for export loadings at the Gulf continues to weigh on the market. Like corn, weekly inspections for the week ended Sept. 9 were low because of the lack of export houses loading out and total inspections in the new-crop year are down 94% from the prior year at this time. Track PNW basis was unchanged, while track St. Louis was 14 cents stronger. River bids on the Mississippi River in Iowa were 15 to 20 cents weaker, 10 to 20 cents weaker on the Ohio River are 5 to 20 cents weaker on the Illinois River. Some processors have stronger spot bids for a short time where harvest hasn't started, but then bids drop to new-crop values.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is at 60 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 19 cents under the Kansas City December futures, unchanged from Friday's basis. Kansas City December closed up 3 3/4 cents despite the other two wheat markets closing lower on the day. Weekly inspections for all wheat showed a good amount for hard red winter wheat at the Gulf and PNW but total inspections for the crop year are down 13% from the previous year. Morocco is planning to reduce its 135% import duty on soft wheat to 0% on Nov. 1. Basis was steady on the interior and no cars showed for sale on the KC spot market.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 12 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 not quoted, 13.5% proteins were not quoted; 14% proteins were unchanged to up 20 cents at +90N to +130; 14.5% proteins were unchanged at +110N, 15% proteins were up 55 cents to up 20 cents at +140 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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