DTN Daily Basis Comments
Tuesday Morning Basis Update
The national average basis for corn was 1 cent stronger at 22 cents under the May futures contract while the DTN National Corn Index was unchanged at $3.21. The national average basis for soybeans was 1 cent stronger at 47 cents under the May futures contract while the DTN National Soybean Index was up 22 cents at $8.37. The national average basis for HRW wheat was 3 cents weaker at 26 cents under the May futures contract while the DTN National Hard Red Winter Wheat Index was up 17 cents at $4.64. The national average basis for HRS wheat was 6 cents weaker at 17 cents under the May futures contract while the DTN National Hard Red Spring Wheat Index was up 3 cents at $5.13.
| DTN Cash | Change From | National | Contract | Change from | |
| Commodity | Index | Prev Day | Avg. Basis | Month | Prev Day |
| Corn: | $3.21 | $0.00 | -$0.22 | May | $0.003 |
| Soybeans: | $8.37 | $0.22 | -$0.47 | May | $0.004 |
| SRW Wheat: | $5.49 | $0.22 | -$0.13 | May | -$0.014 |
| HRW Wheat: | $4.64 | $0.17 | -$0.26 | May | -$0.033 |
| HRS Wheat: | $5.13 | $0.03 | -$0.17 | May | -$0.066 |
The national average corn basis for Monday is at 22 cents under the May futures, 1 cent stronger than Friday's basis. May corn closed down 1/4 cent, unable to follow the strong closes in the wheat and soybean markets. The corn market is on an opposite path, mainly due to the struggle facing the U.S. ethanol industry as more plants pull nearby corn bids and/or take a temporary shutdown altogether. It's another trickledown effect of lower gasoline prices and a sharply lower ethanol futures close Monday, as all three markets intertwine. Ethanol plant basis continues to weaken or disappear altogether at some plants. Central Iowa and southeastern Nebraska basis was 1 cent weaker and southwest Iowa basis was 6 cents weaker. Basis for rail delivered to St. Louis was 1 cent weaker and the first posted bid for shuttles delivered to the Pacific Northwest is at+95K for last April. There was fresh export business of corn sold to China announced on March 20, a welcome sight.
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The national average soybean basis for Monday is at 47 cents under the May futures, 1 cents stronger than Friday's basis. May soybeans closed up 21 1/2 cents Monday, once again pulled higher with soymeal futures as May closed up $8.40. The market found support from Friday's USDA reported sale of soybeans to China, with hopes that their purchases will continue. Soybean meal is also seeing support from the feed side of the market as a fill-in for DDG, which is experiencing a supply crunch. Monday's inspection report showed that soybean inspections so far this crop year are 9% above what is needed to meet the USDA current forecast. The track PNW shuttle basis was 3 cents stronger for the balance of March and first half April. Processor basis remains firm as crush margins are strong, while river basis remains mixed as the Upper Mississippi above St. Louis is waiting to reopen at Lock 24 and 25 as winter repairs are almost completed.
The national average SRW wheat basis for Monday is at 13 cents under the Chicago May futures, 1 cent weaker than Friday's basis.
HARD RED WINTER WHEAT:The national average HRW wheat basis for Monday is at 23 cents under the Kansas City May futures, 3 cents weaker than Friday's basis. There were no cars sold on the KC spot market Monday with premiums remaining unchanged there. The Gulf basis remains firm after China recently purchased U.S. a cargo of HRW wheat. Monday's crop progress report shows improvements in Kansas, Texas, Colorado and Oklahoma ratings versus last week. Oklahoma noted their wheat was 27% jointed, behind average for this time of year and Texas reported wheat progress was above normal with 27% heading.
HARD RED SPRING WHEAT:The national average HRS wheat basis for Monday is at 17 cents under the Minneapolis May futures, 6 cents weaker than Friday's basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis May futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were not quoted; 14% proteins were down 15 cents to down 5 cents at +130* to +155; 14.5% proteins were down 35 cents to down 45 cents at +110 and 15% proteins were down 20 cents to unchanged at +135 to +175. Receipts were 125 cars, which includes four trains.* (Bid=B Ask=A Nominal=N) Wheat on the MGEX floor is traded delivered Chicago/beyond.
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow Mary Kennedy on Twitter @MaryCKenn
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