DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 12 cents under the March futures contract while the DTN National Corn Index was down 14 cents at $5.56. The national average basis for soybeans was 1 cent stronger at 36 cents under the January futures contract while the DTN National Soybean Index was down 23 cents at $11.81. The national average basis for hard red winter (HRW) wheat was 1 cent stronger at 17 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index was down 34 cents at $8.05. The national average basis for hard red spring (HRS) wheat was 4 cents stronger at 28 cents under the March futures contract and the DTN National Hard Red Spring Wheat Index was down 32 cents at $9.82.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.56	-$0.14	-$0.12	Mar	$0.008
Soybeans:	$11.81	-$0.23	-$0.36	Jan	$0.014
SRW Wheat:	$7.42	-$0.25	-$0.45	Mar	$0.100
HRW Wheat:	$8.05	-$0.34	-$0.17	Mar	$0.011
HRS Wheat:	$9.82	-$0.32	-$0.28	Mar	$0.030

CORN:

The national average corn basis for Tuesday is 12 cents under the March futures, unchanged from Monday's basis. December corn closed down 14 3/4 cents Tuesday, falling lower along with the sharp losses in the entire grain and energy markets. All U.S. markets were affected by worries of the new COVID-19 variant possibly causing more lockdowns, stifling energy demand. Should travel restrictions return, that will have a negative impact on gasoline demand and ethanol plant margins, and in turn, pressure cash corn demand. One big driver crushing markets is the uncertainty about whether vaccines will be effective against the new variant. Track PNW shuttle basis is flat at +145H, while CIF NOLA basis is 2 cents stronger for November and 4 cents stronger for December. Secondary shuttle freight has pulled back with first half December now bid at $200 per car over tariff against offers of $400 over, mid-period is bid $150 over against offers of $400 over and last-half December is bid at option price against offers of $250 over.

SOYBEANS:

The national average soybean basis for Tuesday is at 36 cents under the January futures, 1 cent stronger than Monday's basis. January soybeans closed down 24 1/4 cents as the energy markets fell apart Tuesday, dragging soybeans, bean oil and meal lower as well. In addition to the funds bailing out of long positions, the market reacted on fears of the new COVID-19 variant omicron having a negative effect on travel, which in turn would mean less demand for biofuels and gasoline. Global vegetable oils also reacted with the same fears and added to the demise of the market. Early Tuesday, USDA announced a paltry sale of 4.85 million bushels (mb) (132,000 mt) of soybeans for delivery to unknown destinations during the 2021/2022 marketing year. Track PNW shuttle basis was steady at +180F for December, while track St. Louis was 6 cents stronger for November and 3 cents stronger for December. CIF NOLA basis was 2 cents stronger for November and 3 cents stronger for December. The St. Paul District officially announced the end of the 2021 shipping season on Nov. 29, closing the river for the winter. Processor basis remains firm and it is interesting to note that basis levels are at option price to -10F at seven different Midwest plants.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Tuesday is at 45 cents under the March futures, 10 cents stronger than Monday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Tuesday is at 17 cents under the Kansas City March futures, 1 cent stronger than Monday's basis. KC March futures were sharply lower, down 35 cents in sync with the other markets falling Tuesday. Funds were liquidation positions which added to the sharp losses as stops were hit on the way down. The mills however continue to pay up for spot cars, with ordinary and 11% proteins up 23 cents, 11.2% protein up 18 cents and 11.6% protein up 13 cents.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is at 28 cents under the Minneapolis March futures, 4 cents stronger than Monday's basis. The Minneapolis spot spring wheat cash market closed as follows basis the Minneapolis March futures: 12% proteins were not quoted; 13% proteins were not quoted; 14% proteins were at +165 to +180; 14.5% proteins were up 35 cents to up 45 cents at +150 to +180; 15% proteins were up 20 cents to up 35 cents at +160 to +180 and 16 proteins were not quoted. Wheat receipts on the exchange floor were 35 cars, which included zero train(s).* MGEX Daily Grain Prices are Delivered Chicago/Beyond: Spot No. 1 Milling Northern/Dark Northern Spring Wheat.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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