DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 2 cents weaker at 11 cents under the December futures contract while the DTN National Corn Index was up 7 cents at $5.15. The national average basis for soybeans was unchanged at 48 cents under the November futures contract while the DTN National Soybean Index was up 8 cents at $12.35. The national average basis for HRW wheat was 1 cent stronger at 18 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was up 16 cents at $6.88. The national average basis for HRS wheat was unchanged at 13 cents under the December futures contract while the DTN National Hard Red Spring Wheat Index was up 15 cents at $8.91.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.15	$0.07	-$0.11	Dec	-$0.016
Soybeans:	$12.35	$0.08	-$0.48	Nov	-$0.003
SRW Wheat:	$6.44	$0.14	-$0.62	Dec	-$0.014
HRW Wheat:	$6.88	$0.16	-$0.18	Dec	$0.003
HRS Wheat:	$8.91	$0.15	-$0.13	Dec	-$0.005

CORN:

The national average corn basis for Wednesday is 11 cents under the December futures, 2 cents weaker than Tuesday's basis.

December corn closed up 8 1/2 cents Wednesday, very near the high of the day and 9 cents off the low. Wednesday's weather map shows a large area of rain covering the Eastern Corn Belt, mostly east of Illinois and Wisconsin. Heavy rains are expected to delay harvest with an added risk of flash flooding in Michigan and Ohio. The rest of the Corn Belt will experience dry fall weather, which is supportive for harvest efforts where crops are ready. The corn market will be affected in the coming weeks by weather related to harvest or harvest delays and weekly export news as well. Wednesday's Energy Information Administration showed overall production declined after two weeks of higher output, down 11,000 barrels per day (bpd) or 1.2% to 926,000 bpd. Track PNW basis was steady, while ethanol plant basis was weaker in parts of the Midwest. Basis in eastern Nebraska and western Iowa basis was 15 to 35 cents weaker, and north-central Nebraska was 10 to 15 cents weaker. The secondary shuttle freight on the UP remains high with first period October bid at $800 per car over tariff against offers of $1400 and first half October is bid $800 against offers of $1200. BNSF secondary freight has come down some with first period October bid at $500 against offers of $950 and first half October bid at $400 against offers of $800.

SOYBEANS:

The national average soybean basis for Wednesday is at 48 cents under the November futures, unchanged from Tuesday's basis. November soybeans closed up 8 3/4 cents thanks to the rally in December bean oil from a three-month low, up 1.06 cents, and the sharply higher crude oil market. Underlying pressure came from the uncertainty over the RFS blending requirements after multiple energy pricing services released proposed ethanol blend volume numbers for 2020 through 2022 that led the Renewable Fuels Association to release a statement calling it a "spoofing" attempt, helping markets to recover. The main thing that will affect soybeans is harvest and as that ramps up and new-crop soybeans move to the market, there will be more added pressure. Track PNW shuttles were 5 cents weaker for September/first half October, while CIF NOLA was 3 cents stronger. Barge freight brokers report empties have been coming upriver from the Gulf, but rain in some areas has ceased loading. The good thing about the rains is that on the Ohio River and at Cairo south, water levels have come up which will allow normal drafts on barges in those areas. Even still, unless the rains continue, water levels in parts of the Lower Mississippi are expected to fall in early October.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 62 cents under the December futures, 2 cents weaker than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 18 cents under the Kansas City December futures, 1 cent stronger than Tuesday's basis. KC December futures were up 15 1/2 cents, supported by a weaker U.S. dollar and a five-week high in Paris milling futures. Paris futures closed higher on rumors that China had been in looking for EU/French wheat, according to traders. Mills are still in the market for any spot cars that show up for sale, with ordinary proteins trading up 5 cents and 12% proteins trading up 5 cents.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 13 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 unchanged at +125N; 14% proteins were at +135; 14.5% proteins were unchanged at +115N, 15% proteins were down 10 cents to unchanged at +130 to +150 and 16% proteins were not quoted. Receipts were 31 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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