DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 2 cents stronger at 10 cents under the March futures contract while the DTN National Corn Index was up 5 cents at $5.61. The national average basis for soybeans was 1 cent stronger at 35 cents under the January futures contract while the DTN National Soybean Index was up 12 cents at $11.93. The national average basis for hard red winter (HRW) wheat was 11 cents weaker at 28 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index was down 14 cents at $7.91. The national average basis for hard red spring (HRS) wheat was 3 cents weaker at 31 cents under the March futures contract and the DTN National Hard Red Spring Wheat Index was up 7 cents at $9.89.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.61	$0.05	-$0.10	Mar	$0.015
Soybeans:	$11.93	$0.12	-$0.35	Jan	$0.012
SRW Wheat:	$7.50	$0.07	-$0.41	Mar	$0.041
HRW Wheat:	$7.91	-$0.14	-$0.28	Mar	-$0.109
HRS Wheat:	$9.89	$0.07	-$0.31	Mar	-$0.028

CORN:

The national average corn basis for Wednesday is 10 cents under the March futures, 2 cents stronger than Tuesday's basis. December corn closed up 4 cents at $5.71 1/2 Wednesday, trying to recover from the losses of Tuesday and also found some support from USDA reporting 5.9 million bushels (mb) (150,000 mt) of corn sold to Columbia for 2021-22 delivery. The cash corn market may come under pressure from the recent steep losses in ethanol cash prices pressuring margins, along with a slowdown last week in production. In addition, builds in oil and gasoline stocks amid a decline in blending demand, will also hurt demand for physical corn and likely will pressure basis. Track PNW corn basis is unchanged, while CIF NOLA basis is 1 cent stronger for November and 4 cents stronger in December. Track St. Louis basis is 4 cents stronger, while basis in the Iowa corridor is 3 cents weaker as the winter closure will shut them down after this week. On top of that, American Commercial Barge Line reported the Mississippi is closed during working hours from Dec. 2 to Dec. 20 for intense Revetment Operations at Victoria Bend. "Due to this closure, expect significant impact to north and southbound transit of multiple days."

SOYBEANS:

The national average soybean basis for Wednesday is at 35 cents under the January futures, 1 cent stronger than Tuesday's basis. January soybeans closed up 11 cents Wednesday along with stronger meal and bean prices. Crush margins are still good and processors continue to show that in their basis bids. The market is keeping an eye on South American weather as Argentina has only seen 73% to 74% of normal precipitation over the last two weeks. Rio Grande Do Sul has been dry and only 30% to 35% of normal precipitation is expected through first half December. Here in the U.S., export demand needs a boost and that may not happen as China has been buying soybeans from Brazil recently. Track PNW shuttle basis is steady, while track St. Louis is 5 cents stronger for November and 2 cents stronger for December. River basis in the Iowa corridor is weaker as that area prepares for winter closure of that portion of the river. Barge freight is higher and on top of that, river levels in the Lower Mississippi are causing draft restrictions. The river level at Memphis is -0.13 feet below zero gauge and is expected to fall even lower. The Mississippi at St. Louis is falling and heading towards levels below zero gauge.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 41 cents under the March futures, 4 cents stronger than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 28 cents under the Kansas City March futures, 11 cents weaker than Tuesday's basis. March KC wheat closed down 3 cents, reaching its lowest trade in two weeks. Basis is being supported by mills continuing to buy cars off the spot market that show up for sale. Domestic basis is also strong as railroads are slow in moving trains to mills. Export tenders are brisk with Jordan in for 120,000 metric tons (mt) of milling wheat, Tunisia is in for 175,000 mt of milling wheat and 92,000 mt of durum, Japan is tendering overnight for U.S. soft white wheat, and the Saudi Grains Organization (SAGO)is tendering for 535,000 mt of milling 12.5% protein for May through June 2022 arrival.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 31 cents under the Minneapolis March futures, 3 cents weaker than Tuesday'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 up 15 cents to unchanged +180; 14.5% proteins were up 10 cents to down 10 cents at +160* to +170; 15% proteins were up 5 cents to down 10 cents at +165 to +170 and 16 proteins were at +180. 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

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