DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 11 cents under the March futures contract, while the DTN National Corn Index was up 1 cent at $5.95. The national average basis for soybeans was unchanged at 35 cents under the January futures contract while the DTN National Soybean Index was down 2 cents at $13.22. The national average basis for hard red winter (HRW) wheat was unchanged at 12 cents under the March futures contract and the DTN National Hard Red Winter Wheat Index was up 3 cents at $8.13. The national average basis for hard red spring (HRS) wheat was unchanged at 26 cents under the March futures contract and the DTN National Hard Red Spring Wheat Index was up 9 cents at $9.83.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.95	$0.01	-$0.11	Mar	$0.000
Soybeans:	$13.22	-$0.02	-$0.35	Jan	$0.008
SRW Wheat:	$7.44	$0.04	-$0.44	Mar	-$0.004
HRW Wheat:	$8.13	$0.03	-$0.12	Mar	$0.001
HRS Wheat:	$9.83	$0.09	-$0.26	Mar	$0.000

CORN:

The national average corn basis for Wednesday is 11 cents under the March futures, unchanged from Tuesday's basis. March corn closed up 3/4 cent per bushel after starting Wednesday lower. There really isn't much in the way of fresh news besides the weekly EIA report as the market is holiday mode this week. The higher ethanol plant production is good news for corn demand, but cash ethanol faded lower Wednesday. As long as plant margins stay good, they will run at least at normal rates, but the northern plants in Minnesota and North Dakota are seeing bitter cold, which can be rough for plants. South America weather remains the main focus of traders, and while there are some chances of rain for southern Brazil, the next two weeks call for hot and dry conditions in Argentina and southern Brazil. Track PNW shuttle basis was unchanged, while track St. Louis was 4 cents stronger. BNSF secondary shuttle freight finally showed offers against bids with first half January bid at $1,500 over car over tariff against offers of $2,300 over and last half January is bid at $1,200 per car over against offers of $2,300 over. Basis has been quiet so far this week as we near the end of the year and farmers will wait until 2022 to haul corn if prices stay lucrative.

SOYBEANS:

The national average soybean basis for Wednesday is at 35 cents under the January futures, unchanged from Tuesday's basis. January soybeans closed down 2 3/4 cents and March soybeans were up 3/4 cent, with the January contract heading into first notice day Friday. Like corn, the market is keeping an eye on Brazil weather as harvest nears. U.S. soybeans are expensive compared to Brazil soybean prices currently and that won't bode well for exports, which are also lagging as we leave 2021 behind. The one bright spot is soybean meal, which has been higher overall this week as crush margins remain strong. Track PNW shuttle basis was steady, while track St. Louis was 2 cents stronger for January. Barge freight is weaker nearby and barge lines report that shippers are looking ahead to February and March to buy freight. There is about a 20-cent inverse between December and January CIF NOLA basis, and so far that hasn't changed as December comes to a close.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 44 cents under the March futures, unchanged from Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 12 cents under the Kansas City March futures, unchanged from Tuesday's basis. The KC March closed up 2 3/4 cents as the market has been having trouble finding direction for this last week of December. Egypt's state grains buyer GASC bought 300,000 metric tons (mt) of wheat in their tender Wednesday with 60,000 mt of French wheat, 180,000 mt of Ukrainian wheat and 60,000 mt of Romanian wheat. The spot KC milling premiums were down 5 cents for 11% and 11.2% proteins, while the other proteins were not tested. Once and if logistic problems ever get cleaned up, the spot KC market could fade in a hurry. The Gulf and PNW basis is still firm and waiting for the Iraq tender on Jan. 3.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 26 cents under the Minneapolis March futures, unchanged from 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; 13.5% proteins were not quoted; 14% proteins were not quoted; 14.5% proteins were at +155 to +160*; 15% proteins were unchanged to up 40 cents at +155N to +200, and 16 proteins were not quoted. Wheat receipts on the exchange floor were 37 cars, which included one 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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