DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was steady at 10 cents under the March futures contract while the DTN National Corn Index was up 5 cents at $5.67. The national average basis for soybeans was also steady at 35 cents under the January futures contract while the DTN National Soybean Index was up 16 cents at $12.09. The national average basis for hard red winter (HRW) wheat was 12 cents stronger at 16 cents under the March futures contract and the DTN National Hard Red Winter Wheat Index was up 35 cents at $8.26. The national average basis for hard red spring (HRS) wheat was unchanged at 31 cents under the March futures contract while the DTN National Hard Red Spring Wheat Index was up 23 cents at $10.12.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.67	$0.05	-$0.10	Mar	$0.002
Soybeans:	$12.09	$0.16	-$0.35	Jan	-$0.001
SRW Wheat:	$7.69	$0.19	-$0.46	Mar	-$0.053
HRW Wheat:	$8.26	$0.35	-$0.16	Mar	$0.121
HRS Wheat:	$10.12	$0.23	-$0.31	Mar	$0.007

CORN:

The national average corn basis for Thursday is 10 cents under the March futures, unchanged from Wednesday's basis. March corn was up 5 1/4 cents and finding support from energy markets recovering Thursday after the panic earlier in the week when a new COVID variant was reported, sending some countries to impose lockdowns and new travel restrictions. It appears for now fears have eased, but there are still restrictions in the travel sector internationally and other restrictions globally. Thursday's weekly export sales and shipments for the week ended Nov. 25, showed an increase of 40.2 million bushels (mb) (1,020,800 mt) of corn export sales. Shipments during that week were below what is needed each week to achieve USDA's export estimate of 2.500 billion bushels (bb) in 2021-22, while corn export commitments are down 7% from a year ago. The track PNW shuttle basis was 2 cents stronger for December at +147H, while ethanol basis levels have turned mixed given the recent change in margins and the volatile energy market and cash ethanol prices. Plants report margins have slipped recently, but still remain steady and plants also reported rail logistics are poor.

SOYBEANS:

The national average soybean basis for Thursday is at 35 cents under the January futures, unchanged from Wednesday's basis. January soybeans closed up 16 cents Thursday as soybean oil also rose on the day. Adding support to the market were fresh sales reported by USDA with 164,100 metric tons (mt) (6 mb) to unknown for 2021-22 and another 130,000 mt (4.8 mb) to China. Thursdays' weekly export sales report was impressive as far as shipments for the week ended Nov.25 at 85.5 mb and well above the weekly average of 34 mb needed each week to reach USDA estimates. In the NASS monthly Fats and Oils report, soybeans crushed for crude oil was 5.91 million tons (197 million bushels) in October 2021 and higher than analyst expectations. Crush margins have been strong and processors have been busy taking advantage of that. Track PNW shuttle basis was 5 cents stronger at +185F for first half December, while CIF NOLA basis is strong as barge freight rises. Besides low water issues lowering drafts in the Lower Mississippi, the river closure during working hours on 12/2 through 12/20 for intense Revetment Operations at Victoria Bend, is going to slow barges moving north and south.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Thursday is at 46 cents under the March futures, 5 cents weaker than Wednesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Thursday is at 16 cents under the Kansas City March futures, 12 cents stronger than Wednesday's basis. March KC wheat closed up 23 cents as talk of China shopping for U.S. wheat got the market excited. Chatter is that China had purchased a significant amount of Australian wheat along with Canadian and U.S. spring wheat. As more spot cars showed up Thursday, mills jumped in and paid up to buy them, a trend that has not ceased. Ordinary proteins were up 5 cents, 11.8% proteins were up 25 cents, 12% through 12.8% proteins were up 17 cents and 13% through 14% proteins were up 23 cents. Mills will keep this up as long as logistic issues continue.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Thursday is at 31 cents under the Minneapolis March futures, unchanged from Wednesday'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 down 35 cents to down 15 cents at +145 to +165; 14.5% proteins were down 25 cents to down 35 cents at +135; 15% proteins were down 35 cents to up 5 cents at +130* to +180 and 16 proteins were unchanged at +180N. Wheat receipts on the exchange floor were 110 cars, which included three 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

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