DTN Daily Basis Comments

Thursday Morning Basis Update

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 corrected from Tuesday and was 6 cents stronger at 4 cents over the December futures contract, while the DTN National Corn Index was down 4 cents at $6.92. The national average basis for soybeans was 3 cents stronger at 39 cents under the January futures contract and the DTN National Soybean Index was up 9 cents at $14.16. The national average basis for hard red winter (HRW) wheat was corrected from Tuesday and is 8 cents stronger at 39 cents under the December futures contract and the DTN National Hard Red Winter Wheat Index was down 41 cents at $9.01. The national average basis for hard red spring (HRS) wheat was 2 cents stronger at 46 cents under the December futures contract and the DTN National Hard Red Spring Wheat Index was down 38 cents at $9.03.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $6.92 -$0.04 $0.04 Dec $0.060
Soybeans: $14.16 $0.09 -$0.39 Jan $0.027
SRW Wheat: $7.90 -$0.58 -$0.56 Dec -$0.013
HRW Wheat: $9.01 -$0.41 -$0.39 Dec $0.084
HRS Wheat: $9.03 -$0.38 -$0.46 Dec $0.024

CORN:

The national average corn basis for Wednesday was corrected from Tuesday and is 4 cents over the December futures, 6 cents stronger than Tuesday's basis. Track PNW basis for November is unchanged at +180Z and December is unchanged at +180Z. First-half November CIF NOLA is unchanged at +195Z and balance of November is unchanged at +190Z, while track St. Louis for first-half November is steady at +5Z and last-half is steady +24Z. The water level there is lower Thursday at -1.05 feet below zero gauge, while the gauge at Memphis is -8.35 feet, with the forecast by the end of this week to be at -7.8 feet and then falling. Dredges continue to move around in the Lower Mississippi River, busy dredging as groundings continue to occur in the LMR. Cedar Rapids, Iowa, is steady at -20Z; Fort Dodge, Iowa, is steady at +45Z; Council Bluffs, Iowa, is steady at +45Z; and Blair, Nebraska, is steady at +45Z, with Hastings, Nebraska, steady at +30Z. BNSF secondary shuttle freight is bid $1800 over for returns against offers of $2500 over, November is bid $1800 over against offers of $2500 over and December is bid $1200 over against offers of $1700. UP secondary freight is bid $2000 over for returns against no offers, while November is bid $2000 over against offers of $3000 and December is bid $1000 over against offers of $2000.

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SOYBEANS:

The national average soybean basis for Wednesday is 39 cents under the January futures 3 cents stronger than Tuesday's basis. Track PNW basis is steady for first-half November at +275F and last-half is 10 cents weaker +260F, while CIF NOLA basis for November is 20 cents weaker at +190F. Track St. Louis is at -8F for first-half November and last-half November is bid +33F. River basis in the mid-Mississippi at Burlington, Iowa, is 8 cents stronger at -27F and just north of St. Louis on the Mississippi River, Quincy, Illinois, is 18 cents stronger at +13F, while basis on the Illinois River at Havana, Illinois, is 5 cents stronger at -15F. Barge freight for this week is slightly lower for the bid/ask in some areas and higher in others. St. Louis corridor is at 1700%/1900%; 1800%/2000% in the Illinois River corridor; 2000%/2200% in the lower Ohio River corridor; and 1500%/1700% in the Memphis Through Cairo Terms (MTCT) corridor. Shippers still comment that empties are hard to find. Processor basis in southern Minnesota is 10 cents stronger at +45F; Council Bluffs, Iowa, is 15 cents stronger at +35F; Sioux City, Iowa, is steady at +40F; Volga, South Dakota, is 10 cents weaker at +10F; and Aberdeen is 10 cents stronger at +15F.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is 56 cents under the December futures, 1 cent weaker than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday was corrected from Tuesday and is 39 cents under the Kansas City December futures, 8 cents stronger than Tuesday's basis. Mills made it obvious again at midweek that they are willing to pay up for spot cars right now and with lower protein still favored. Premium for ordinary protein through 11.2% were steady at +250, 11.4% through 12.8% proteins are up 25 cents at +240 and 13% through 14% are 11 cents higher at +211. The 11% protein Texas Gulf basis is +230 and 11.5% protein PNW basis is steady at +195. The lack of rain in much of southwest Kansas is a big concern as the condition of the new crop is poor ahead of dormancy.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is 46 cents under the Minneapolis December futures, 2 cents stronger 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 not quoted, 14% proteins were unchanged to up 5 cents at +200 to +205, 14.5% proteins were unchanged at +190N, 15% proteins were up 45 cents to up 30 cents at +240 to +260, and 16% proteins were not quoted. Wheat receipts on the exchange floor were 16 cars, which included zero (spring wheat) train(s).* Bid (B), Ask(A), Nominal(N). MGEX Daily Grain Prices are based 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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