DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 7 cents under the May futures contract while the DTN National Corn Index was up 7 cents at $5.85. The national average basis for soybeans was 1 cent stronger at 22 cents under the May futures contract while the DTN National Soybean Index was up 17 cents at $14.28. The national average basis for HRW wheat was unchanged at 23 cents under the May futures contract while the DTN National Hard Red Winter Wheat Index was up 3 cents at $5.89. The national average basis for HRS wheat was unchanged at 27 cents under the May futures contract while the DTN National Hard Red Spring Wheat Index was up unchanged at $6.37.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.85	$0.07	-$0.07	May	$0.006
Soybeans:	$14.28	$0.17	-$0.22	May	$0.007
SRW Wheat:	$6.35	$0.00	-$0.17	May	$0.001
HRW Wheat:	$5.90	$0.03	-$0.23	May	$0.003
HRS Wheat:	$6.37	$0.00	-$0.27	May	$0.002

CORN:

The national average corn basis for Monday is at 7 cents under the May futures, unchanged from Friday's basis. May corn closed up 6 1/2 cents to start the week as cold wet weather in the U.S. may slow planting progress. In southern Brazil, the second corn crop needs moisture and only light amounts are in this week's forecast. In Argentina, heavy rain in the forecast this week will likely stall the corn harvest there. Weekly corn inspections for the week ended April 15 showed total inspections in 2020-21 are now up 84% from the previous year. Much of that increase is thanks to very active corn loadings on the Pacific Northwest which has yet to slow down. The cash corn price is well supported by strong demand from ethanol plants and exporters who have commitments to cover. Track PNW shuttle basis has remained steady for now, while track St. Louis was weaker. Secondary shuttle freight was bid $100 per car over tariff against offers of $300 over and May is bid at $50 under against offers of $50 over. The corn basis remains supported by ethanol plants who are paying competitive prices and given the jump in cash ethanol prices, expensive corn prices have not yet hurt margins.

SOYBEANS:

The national average soybean basis for Monday is at 22 cents under the May futures, 1 cent stronger than Friday's basis. May soybeans closed up 16 1/2 cents as tight old-crop supplies and continued strength in the cash price overall is supporting the market. May soybean meal rose as well, up $5.30 and soybean oil was slightly lower on the day. Weekly soybean inspections for the week ended April 15 showed total inspections in 2020-21 are now up 67% from the previous year. The soybean market remains focused on the strong domestic demand as processors scramble for old crop and, in turn, pushing basis levels to eight-year highs. A processor in northeastern South Dakota and in southwestern Minnesota posted basis 10 cents stronger for April, May and June. It's a similar pattern seen at other processing plants recently as crushers need old-crop beans. It's safe to say the U.S. may need to import more soybeans than normal so processors don't run out.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is at 17 cents under the May futures, unchanged from 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, unchanged from Friday's basis. KC May closed up 2 1/2 cents as the market is keeping an eye on the cold weather in the Plains and possible impacts to the sensitive winter wheat plants. Mills are still looking to buy old-crop HRW wheat and have kept rail prices strong. In addition, the Texas Gulf price for ordinary protein was 5 cents stronger. Weekly inspections were good with white wheat being the favorite last week, which included China.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 27 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 unchanged at +115N; 13.5% proteins unchanged at +105N; 14% proteins were unchanged to up 15 cents at +115 to +135; 14.5% proteins were unchanged at +130N to +140N; 15% proteins were unchanged to down 5 cents at +135N to +145. Receipts were 40 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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