DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 3 cents weaker at 3 cents under the December futures contract while the DTN National Corn Index was down 7 cents at $5.26. The national average basis for soybeans was unchanged at 47 cents under the November futures contract while the DTN National Soybean Index was up 1 cent at $12.49. 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 4 cents at $7.02. 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 2 cents at $8.95.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.26	-$0.07	-$0.03	Dec	-$0.029
Soybeans:	$12.49	$0.01	-$0.47	Nov	-$0.002
SRW Wheat:	$6.54	$0.01	-$0.59	Dec	-$0.002
HRW Wheat:	$7.02	$0.04	-$0.19	Dec	-$0.001
HRS Wheat:	$8.95	$0.02	-$0.12	Dec	$0.005

CORN:

The national average corn basis for Thursday is 3 cents under the December futures, 3 cents weaker than Wednesday's basis. December corn closed down 4 cents, due in part to Gulf terminals coming back online. Besides Cargill Westwego, Dreyfus, Bunge and ADM midstream, hearing Zen-Oh Grain in Convent may have just started up again as well. Adding pressure to corn is the absence of China, which hasn't bought U.S. corn since May. Weekly export sales and shipments for the week ended Sept. 9 showed export shipments below what is needed each week to achieve USDA's current export estimate. Given the lack of the ability at the Gulf to load out that week, the market was not surprised. Cash corn is still doing well given that harvest is starting, but the flip side of that is the southern harvest is behind due recent heavy rains. One thing to keep an eye on is more talk this week of heavy tar spot seen in northern Indiana, western and central Illinois, southern Michigan and southern Wisconsin that will definitely affect yield. Track Pacific Northwest basis is steady for November, while track St. Louis is 2 cents weaker. UP and BN secondary shuttle freight continues to push higher for late September and first half October. The CIF NOLA corn basis was 5 cents stronger, but like soybeans, river bids were lower due to a spark in barge freight Thursday.

SOYBEANS:

The national average soybean basis for Thursday is at 47 cents under the November futures, unchanged from Wednesday's basis. November soybeans closed up 1 1/2 cents, finding some support from the USDA reporting private exporters sold 132,000 metric tons (mt) (4.85 million bushels) of soybeans for delivery to China during the 2021-22 marketing year. Some pressure came from the weakness in soybean oil Thursday as the December futures lost 1.53 cents. Weakness in other vegetable oil markets pressured soybean oil along with the delays in loadings of soybeans and meal out of the Gulf as the recovery at Gulf terminals is picking up, but still moving slowly as far as loadings. There were 15 vessels loaded this week so far but remember that there were reports of 50 vessels waiting to load last week. Weekly export sales and shipments for the week ended Sept. 9 showed shipments well below what is needed each week to meet the current USDA export estimate. Track PNW remains firm at +180X, while CIF NOLA was 10 cents higher. River basis however was weaker as barge freight has suddenly come alive south of Memphis as the southern harvest is causing that demand to explode. Upriver barge freight was quiet but the next thing to watch is the low water that will slow barges heading south. The water level on the Mississippi River at Memphis is 1 foot below the low stage of 5 feet and is expected to fall more. The Mississippi River at St. Louis is at 3.3 feet and is expected to fall below zero gauge by mid next week.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Thursday is at 59 cents under the December futures, unchanged from Wednesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Thursday is at 19 cents under the Kansas City December futures, unchanged from Wednesday's basis. KC December was up 4 1/2 cents and once again led the wheat complex higher. DTN weather points to some isolated showers will be possible in the central and Southern Plains through the next week, but most areas should stay dry while temperatures remain above normal, depleting soil moisture for winter wheat establishment unless the heavier showers materialize. KC spot premiums were not tested Thursday and domestic basis remains steady as the increase in the flat price all week is doing the work in the cash market.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Thursday is at 12 cents under the Minneapolis December futures, unchanged from Wednesday'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 unchanged at +115*, 15% proteins were unchanged at +140N and 16% proteins were not quoted. Receipts were zero cars, which included zero 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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