DTN Daily Basis Comments

Thursday 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 3 cents weaker at 3 cents over the December futures contract, while the DTN National Corn Index was up 1 cent at $6.74. The national average basis for soybeans was 3 cents weaker at 42 cents under the November futures contract and the DTN National Soybean Index was down 3 cents at $13.66. The national average basis for hard red winter (HRW) wheat was 1 cent weaker at 43 cents under the December futures contract while the DTN National Hard Red Winter Wheat Index was up 31 cents at $9.33. The national average basis for hard red spring (HRS) wheat was 4 cents weaker at 57 cents under the December futures contract and the DTN National Hard Red Spring Wheat Index was up 26 cents at $9.16.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $6.74 $0.01 $0.03 Dec -$0.021
Soybeans: $13.66 -$0.03 -$0.42 Nov -$0.035
SRW Wheat: $8.37 $0.32 -$0.67 Dec -$0.002
HRW Wheat: $9.33 $0.31 -$0.43 Dec -$0.016
HRS Wheat: $9.16 $0.26 -$0.57 Dec -$0.037

CORN:

The national average corn basis for Wednesday is 3 cents over the December futures, 3 cents weaker than Tuesday's basis. Track PNW basis for November is steady at +160Z and December is steady at +168Z. Nearby CIF NOLA is at +165Z and October is at +124Z, while track St. Louis has fallen to +5Z for September and 20 cents weaker at -20Z for October as low water and higher barge freight continue to pressure the river market. Cedar Rapids, Iowa, is 20 cents weaker at option the December for September; Fort Dodge, Iowa, is steady at +75Z for September; Council Bluffs, Iowa, is steady at +50Z; and Blair, Nebraska, is 5 cents stronger at +45Z for balance September. It's a tough market for ethanol plants and the poor margins along with lack of available corn nearby are causing slowdowns. BNSF secondary shuttle freight for October is bid at $800 over against offers of $1500 over. UP secondary freight for returns and September is bid $1000 over against no offers and October is bid $1,000 over against offers of $2500 over.

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SOYBEANS:

The national average soybean basis for Wednesday is 42 cents under the November futures, 3 cents weaker than Tuesday's basis. Track PNW basis for this week September is 10 cents weaker at +190X and first-half October is steady at +190X. CIF NOLA basis for the rest of this week is at +185X to +190X, first half October is 5 cents stronger at +165X, and 5 cents stronger at +145X for balance October. Track St. Louis is 22 cents weaker at +22X for spot beans and -15X for first-half October. River basis in the mid-Mississippi at Burlington is 25 cents weaker at -35X and 20 cents weaker at -5X just north of St. Louis on the Mississippi River at Quincy, while basis on the Illinois River at Havana is steady at -25X. Barge freight continues to surge -- 1400%/1600% at St. Louis; 1200%/1500% in the Upper Mississippi River and the Illinois River; 1500%/1700% in the Ohio River; and 1600%/2000% in the Memphis Through Cairo Terms corridor. The river at St. Louis is at -0.75 feet below zero gauge and is expected to fall to -2.7 feet by mid-October. Levels at Memphis are -7.4 feet Thursday and expected to fall to -10.4 feet by Oct. 12. Drafts have been lowered to 9'6' at St. Louis and tow sizes are reduced to 25 barges for southbound moves. This will get worse before it gets better no doubt.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is 67 cents under the December futures, unchanged from Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is 43 cents under the Kansas City December futures, 1 cent weaker than Tuesday's basis. The KC spot protein premiums were not tested Thursday with ordinary protein through 11.8% at +160Z unchanged; 12% through 12.6% unchanged at +152; and 12.8% through 14% unchanged at +142. Texas Gulf 11% protein was steady at +230 and PNW 11.5% was steady at +260. Export tenders returning with Algeria in for Oct. or November shipment of milling wheat likely to be Russian or French and Iraq, Pakistan, Jordan and Taiwan also tendering.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is 57 cents under the Minneapolis December futures, 4 cents weaker than Tuesday'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 at +85* to +95*, 14% proteins were down 5 cents to unchanged at +90* to +175, 14.5% proteins were unchanged at +120N, 15% proteins were up 20 cents to unchanged at +130* to 210A, and 16% proteins were not quoted. Wheat receipts on the exchange floor were 163 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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