DTN Daily Basis Comments

Wednesday Morning Basis Comments

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 2 cents weaker at 6 cents over the December futures contract, while the DTN National Corn Index was down 1 cent at $6.73. The national average basis for soybeans was 2 cents weaker at 39 cents under the November futures contract and the DTN National Soybean Index was down 6 cents at $13.69. The national average basis for hard red winter (HRW) wheat was unchanged at 42 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was up 14 cents at $9.02. The national average basis for hard red spring (HRS) wheat was unchanged at 53 cents under the December futures contract and the DTN National Hard Red Spring Wheat Index was up 12 cents at $8.90.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $6.73 -$0.01 $0.06 Dec -$0.020
Soybeans: $13.69 -$0.06 -$0.39 Nov -$0.024
SRW Wheat: $8.05 $0.12 -$0.67 Dec -$0.012
HRW Wheat: $9.02 $0.14 -$0.42 Dec $0.001
HRS Wheat: $8.90 $0.12 -$0.53 Dec $0.001

CORN:

The national average corn basis for Tuesday is 6 cents over the December futures, 2 cents weaker than Monday's basis. Track PNW basis for November is steady at +160Z and December is steady at +168Z. Nearby CIF NOLA prices are hard to define, but November is at +109Z and +101Z for December, while track St. Louis is 20 cents weaker at +10Z for September as low water and higher barge freight are pressuring the river market. Cedar Rapids, Iowa, is 20 cents weaker at +45Z for September; Fort Dodge, Iowa, is steady at +75Z for September; Council Bluffs, Iowa, is 5 cents weaker at +50Z; and Blair, Nebraska, is steady at +40Z for balance September. We are seeing more of a move to harvest basis, but deferred prices are stronger November forward. BNSF secondary shuttle freight for October is bid at $600 over against offers of $1000 over. UP secondary freight for September is bid $900 over against no offers and October is bid $600 over against offers of $1000 over.

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SOYBEANS:

The national average soybean basis for Tuesday is 39 cents under the November futures, 2 cents weaker than Monday's basis. Track PNW basis for this week September is steady at +200X and first-half October steady at +190X. CIF NOLA basis is 20 cents stronger at +210X for September arrival, and +140X for all October. Track St. Louis is 3 cents weaker at +47X for spot beans and +30X for first-half October. River basis in the mid-Mississippi at Burlington is 28 cents weaker at -10X and 25 cents weaker at +15X just north of St. Louis on the Mississippi River at Quincy, while basis on the Illinois River at Havana is 15 cents weaker at -25X. Barge freight is surging again -- 1250%/1500% at St. Louis; 1100%/1300% in the Upper Mississippi River and the Illinois River; 1300%/1500% in the Ohio River; and 1500%/1700% in the Memphis Through Cairo Terms corridor. Empty barges are hard to find and some empties are still in the hands of many shippers, while the demand is big in the south right now. The river at St. Louis is at -0.63 feet below zero gauge and is expected to fall to -2.6 feet by mid-October. Levels at Memphis are -6.8 feet Wednesday and expected to fall to -10.8 feet by Oct. 10. Drafts have been lowered to 9'6' at St. Louis and south and reduced tow sizes in some spots continue to be in force. As you can guess, logistics are a mess.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Tuesday is 67 cents under the December futures, 2 cents weaker than Monday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Tuesday is 42 cents under the Kansas City December futures, unchanged from Monday's basis. The KC spot protein premiums were unchanged with ordinary protein through 11.8% at +160Z; 12% through 12.6% unchanged at +152; and 12.8% through 14% was unchanged at +142. Texas Gulf 11% protein was steady at +230 and PNW 11.5% was steady at +260.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is 53 cents under the Minneapolis December futures, unchanged from Monday's basis. The Minneapolis spot spring wheat cash premiums closed as follows, based on Minneapolis December futures: 12% proteins were not quoted, 13% proteins were not quoted, 13.5% proteins were not quoted, 14% proteins were down 20 cents to unchanged at +95* to +180, 14.5% proteins were +120*, 15% proteins were down 60 cents to unchanged at +110* to 210N, and 16% proteins were not quoted. Wheat receipts on the exchange floor were 157 cars, which included five train(s).* Bid (B), Ask(A), Nominal(N). 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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Mary Kennedy

Mary Kennedy
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