DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 8 cents under the May futures contract while the DTN National Corn Index was down 8 cents at $5.61. The national average basis for soybeans was 1 cent stronger at 26 cents under the May futures contract while the DTN National Soybean Index was down 20 cents at $13.56. The national average basis for HRW wheat was 2 cents stronger at 23 cents under the May futures contract while the DTN National Hard Red Winter Wheat Index was down 6 cents at $5.56. The national average basis for HRS wheat was unchanged at 29 cents under the May futures contract while the DTN National Hard Red Spring Wheat Index was down 11 cents at $6.14.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.61	-$0.07	-$0.08	May	$0.009
Soybeans:	$13.56	-$0.20	-$0.26	May	$0.010
SRW Wheat:	$6.10	-$0.09	-$0.18	May	$0.016
HRW Wheat:	$5.56	-$0.06	-$0.23	May	$0.012
HRS Wheat:	$6.14	-$0.11	-$0.29	May	$0.006

CORN:

The national average corn basis for Monday is at 8 cents under the May futures, 1 cent stronger than Friday's basis. May corn closed down 8 1/4 cents as it followed the weaker wheat and soybean markets, even though DTN weather remains neutral for corn. DTN's 10-day forecast is for below normal rain for Brazil, especially southern Brazil, where the second corn crop could use moisture. Weekly corn inspections for the week ended April 8 are now up 82% from the prior year and much of the activity centers on brisk corn loadings in the PNW to China, Japan and Korea currently. The track PNW shuttle basis was steady, while track St. Louis was 1 cent weaker and CIF NOLA basis was 2 cents weaker. Secondary shuttle freight remains strong for April with bids at $300 per car over tariff against offers of $500 over. Ethanol plants continue to support the basis as selling has been slow and will likely get worse as fields dry out and farmers get to planting.

SOYBEANS:

The national average soybean basis for Monday is at 26 cents under the May futures, 1 cent stronger than Friday's basis. May soybean closed down 21 cents, pulled lower by the sharp loss in soybean oil, which closed down 1.40 cents. Besides the recent change in Brazil's biodiesel blending rate from 13% to 10%, along with pressure for the vegetable oil markets coming from Malaysian palm oil inventories for March reported at a higher number than expected. Weekly soybean for the week ended April 8 showed that total inspections in 2020-21 are now up 70% from the prior year. Domestic soybean basis was steady, and demand is still firm, while CIF NOLA and track St. Louis basis was 5 cents weaker. River level at St. Louis is at 28.82 feet Tuesday and will hover below minor flood stage Wednesday before receding. Heading into the Lower Mississippi, the levels at Vicksburg are hovering right under major flood stage and the river is not expected to recede below action stage until the end of April.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is at 18 cents under the May futures, 2 cents stronger 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, 2 cents stronger than Friday's basis. The KC May was pulled lower, down 7 1/2 cents, as the spring wheat market backed off to start the week. Adding pressure was the improved outlook for the Russian crop, with SovEcon raising 2021 wheat production from 79.3 million metric tons (mmt) to 80.7 mmt. As for basis, there is nothing going on right now on the export side or milling side. The market focus remains on the new-crop winter wheat in the U.S. and any weather events that may help or harm the crop.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 29 cents under the Minneapolis May futures, unchanged from 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 unchanged at +120N to +130N; 14.5% proteins were unchanged at +115N; 15% proteins were unchanged at +120N to +140N. Receipts were two cars, which included zero train(s).* (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 her on Twitter @MaryCKenn

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