DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn is 1 cent weaker at 13 cents over the March futures contract, while the DTN National Corn Index is up 10 cents at $6.76. The national average basis for soybeans is 1 cent stronger at 22 cents under the January futures contract while the DTN National Soybean Index is up 3 cents at $14.59. The national average basis for hard red winter (HRW) wheat is 2 cents stronger at 31 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index is up 19 cents at $8.33. The national average basis for hard red spring (HRS) wheat is 2 cents stronger at 24 cents under the March futures contract while the DTN National Hard Red Spring Wheat Index is up 14 cents at $9.04.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$6.76	$0.10	$0.13	Mar	-$0.003
Soybeans:	$14.59	$0.03	-$0.22	Jan	$0.008
SRW Wheat:	$7.19	$0.19	-$0.49	Mar	$0.015
HRW Wheat:	$8.33	$0.19	-$0.31	Mar	$0.017
HRS Wheat:	$9.04	$0.14	-$0.24	Mar	$0.027

CORN:

The national average corn basis for Wednesday is 13 cents over the March futures, 1 cent weaker than Tuesday's basis. CIF NOLA for December is at +112H while track St. Louis for December is at +20H. The dangerously cold weather is definitely going to slow, and likely stop, loadings until it warms up. The water level at St. louis is at 1.12 feet above zero gauge and is expected to fluctuate and then fall back to below zero gauge by Dec. 24, while the gauge at Memphis is at +9.9 feet and expected to rise to +10 feet by Dec. 23 and then start falling again. Processors' bids are steady with Cedar Rapids, Iowa, is 5 cents stronger at -10H; Fort Dodge, Iowa, is at +45H; Council Bluffs, Iowa, is 7 cents stronger at +60H; Blair, Nebraska, is at +70H, Lincoln, Nebraska, is at +35H, and Hastings, Nebraska, is at +10H. Secondary shuttle freight prices have shot up for returns, but given the poor weather conditions, that may be a tall order to expect until after Christmas.

SOYBEANS:

The national average soybean basis for Wednesday is 22 cents under the January futures, 1 cent stronger than Tuesday's basis. CIF NOLA basis for December is at +145F and track St. Louis is steady for December is at 1 cent stronger at +46F. River basis on the Ohio River at Cincinnati was 5 cents stronger at +35F, north of St. Louis on the Mississippi River at Quincy, Illinois, is 1 cent stronger at +22F, while basis on the Illinois River at Havana, Illinois, is steady at +12F. Ice is starting to form on the Illinois River and USACE is requiring Ice Couplings at Dresden (IR 271), Marseilles (IR 244), Starved Rock (IR 231) and Peoria (IR 158)locks according to ACBL. No changes to tow sizes yet, but extremely low temps around Christmas may drive restrictions until it warms above zero. Shippers and barge lines have pretty much stopped moving during the extreme cold and storms. Barge freight this week is steady to higher in a few spots, with St. Louis corridor at 825%/875%; 925%/1000% in the Illinois River corridor; 800%/850% in the lower Ohio River corridor; and 650%/700% in the Memphis Through Cairo Terms (MTCT) corridor. Processor basis in southern Minnesota is at +10F to +15F; Council Bluffs, Iowa, is at +45F; Cedar Rapids, Iowa, is at-30F; Sioux City is at +10F; Volga, South Dakota, is at +10F; Aberdeen is -3F, and Lincoln, Nebraska, is at +40F.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is 49 cents under the March futures, 1 cent stronger than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is 31 cents under the Kansas City March futures, 2 cents stronger than Tuesday's basis. The KC spot cash premiums remain steady to firm as we head into a quiet holiday week. The premium for ordinary proteins through 11.8% were up 5 cents at +190 and 12% protein though 14% were up 10 cents at +195. The Gulf track November bid for ordinary protein is at +156, and PNW 11.5% protein is 10 cents higher at +210, while Texas Gulf 11% protein is at +185. Extreme cold settling in this week will cause shippers to slow loadings and rail lines will also be affected. That is likely why not only the HRW spot cars are trading higher, but also Minneapolis spot spring wheat cars, which you can see in the low car count.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is 24 cents under the Minneapolis March futures, 2 cents stronger than Tuesday's basis. The Minneapolis spot spring wheat cash premiums closed as follows, based on Minneapolis March futures: 12% proteins were not quoted, 13% proteins were not quoted, 13.5% proteins were unchanged at +190N, 14% proteins were down 30 cents to down 20 cents at +210 to +240, 14.5% proteins were at +200; 15% proteins were unchanged at +300, and 16% proteins were not quoted. Wheat receipts on the exchange floor were 16 cars, which included zero 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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