DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 2 cents weaker at option the December futures contract while the DTN National Corn Index was up 12 cents at $5.33. The national average basis for soybeans was 2 cents weaker at 47 cents under the November futures contract while the DTN National Soybean Index was up 10 cents at $12.48. The national average basis for HRW wheat was 1 cent stronger at 19 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was up 15 cents at $6.97. 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 up 17 cents at $8.93.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.33	$0.12	$0.00	Dec	-$0.016
Soybeans:	$12.48	$0.10	-$0.47	Nov	-$0.017
SRW Wheat:	$6.54	$0.14	-$0.59	Dec	$0.021
HRW Wheat:	$6.97	$0.15	-$0.19	Dec	$0.008
HRS Wheat:	$8.93	$0.17	-$0.12	Dec	-$0.007

CORN:

The national average corn basis for Wednesday is at option the December futures, 2 cents weaker than Tuesday's basis. December corn closed up 13 1/4 cents Wednesday, its highest trade in eight sessions, once again gathering strength from another surge in wheat futures. News reports said Cargill reopened its Westwego, Louisiana, grain export terminal late Tuesday, but the Reserve terminal has yet to open as it sustained more damage from Ida than the Westwego plant. Bunge and LDC are loading and ADM is loading in its midstream operation. A barge line reported in an email to DTN there were 14 grain vessels loading for export at reopened Gulf terminals and midstream rigs this week, versus the three loaded at the end of last week. Wednesday's EIA report was also supportive to corn demand as ethanol plants increased production again last week. Track PNW basis is unchanged, while river basis in Iowa on the Mississippi is 5 cents weaker, 15 cents weaker in the Upper Mississippi and 10 cents weaker on the Ohio River. Ethanol plant basis is still showing some plants bidding higher for spot corn, while others are dropping basis levels by 10 to 20 cents in some spots, especially where harvest is progressing.

SOYBEANS:

The national average soybean basis for Wednesday is at 47 cents under the November futures, 2 cents weaker than Tuesday's basis. November soybeans closed up 12 cents Wednesday with support from December soybean oil closing up 1.5 cents. The National Oilseed Processors Association (NOPA) reported an August crush of 158.8 million bushels (mb) in August versus the 154.2 mb average of trade estimates. Soybean futures started the day a little lower after USDA announced cancellations of a total of 328,000 metric tons (mt) (12 mb) of sales to China and unknown but recovered as soybean oil took the lead despite NOPA reporting a build in August soybean oil stocks. Track PNW shuttle basis was a mixed bag with one exporter unchanged at +180X and another down 5 cents at +175X. Track St. Louis basis was 12 cents stronger for October, while CIF NOLA bids were steady. Barge freight was up 50% to 75%, but barge lines are still not willing to sell much as they wait for barges to come back from the Gulf, according to freight brokers.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 59 cents under the December futures, 2 cents stronger than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 19 cents under the Kansas City December futures, 1 cent stronger than Tuesday's basis. KC December futures closed up 14 1/4 cents led by strength in Paris milling futures on news that FranceAgrimer said their soft wheat crop was classified as 60% feed with only 40% as milling quality, adding to concerns about the availability of milling wheat in the EU. There were no milling cars for sale on the KC spot market, but milling premiums are firm despite the rise in futures the past few days.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 12 cents under the Minneapolis December futures, unchanged from Tuesday'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 at +140N; 14.5% proteins were up 5 cents at +115*, 15% proteins were unchanged at +140N and 16% proteins were not quoted. Receipts were 26 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

(c) Copyright 2021 DTN, LLC. All rights reserved.