DTN Daily Basis Comments

Tuesday 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 is unchanged at 8 cents over the March futures contract, while the DTN National Corn Index is down 10 cents at $6.74. The national average basis for soybeans is unchanged at 31 cents under the March futures contract while the DTN National Soybean Index is down 16 cents at $14.60. The national average basis for hard red winter (HRW) wheat is 1 cent stronger at 30 cents under the March futures contract and the DTN National Hard Red Winter Wheat Index is down 28 cents at $7.89. The national average basis for hard red spring (HRS) wheat is 2 cents stronger at 19 cents under the March futures contract and the DTN National Hard Red Spring Wheat Index is down 23 cents at $8.69.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $6.74 -$0.10 $0.08 Mar -$0.001
Soybeans: $14.60 -$0.16 -$0.31 Mar -$0.001
SRW Wheat: $6.77 -$0.21 -$0.43 Mar $0.009
HRW Wheat: $7.89 -$0.28 -$0.30 Mar $0.010
HRS Wheat: $8.69 -$0.23 -$0.19 Mar $0.024

CORN:

The national average corn basis for Monday is 8 cents over the March futures, unchanged from Friday's basis. There is no PNW basis bid for January, while February is at +140H. Hereford, Texas, basis is no bid for February, and March is at +140H. CIF NOLA (New Orleans, Louisiana) for January is steady at +73H to +76H, while track St. Louis is steady at +20H for January and +28H for February. The water level at St. Louis is at +2.45 feet above zero gauge and is expected to rise to 4.1 feet by the weekend and then fall slowly. The gauge at Memphis is at +13.35 feet, and levels will rise to +15 feet by the end of January and then start to slowly fall in February. Processors' bids are steady, with Cedar Rapids, Iowa, at -10H; Fort Dodge, Iowa, at +43H; Council Bluffs, Iowa, at +40H; Blair, Nebraska, at +50H; Lincoln, Nebraska, at +30H; Hastings, Nebraska, at +10H; Mitchell, South Dakota, at +10H; Garden City, Kansas, at +115H; and Marshall, Minnesota, at +9H. BN secondary shuttle freight for returns is not bid against offers of $200 over, and January is not bid to offered, while February is not bid against offers of +100 over. UP secondary freight for returns is not bid against offers of $100 over, January is not bid or offered, while February is not bid against offers of $100.

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SOYBEANS:

The national average soybean basis for Monday is 31 cents under the March futures, unchanged from Friday's basis. The PNW basis for January and February shows no bid from one exporter and +210H at another for Jan shuttles. CIF NOLA basis for January is steady at +115H with an 18-cent inverse to first-half February, and track St. Louis is steady at +55H for January and +45H for February. Repairs at Mel Price Lock 26 and Lock 27 continue, with boats having to pass through the auxiliary chamber. Ceres Barge Inc. says that, as of Monday, "We are seeing as much as seven days total each way to make it through the three locks of Lock 27, Mel Price and Lagrange. It definitely is not improving and will probably get worse with the forecasted colder weather hitting this weekend and into next week. We do have enough water in the St. Louis market to increase drafts up to 12 feet at least for this week." River basis north of St. Louis on the Mississippi River at Quincy, Illinois, is at +10H; while basis on the Illinois River at Havana, Illinois, is at +8H. Processor basis for January is mixed, with Mankato, Minnesota, at -20H; Council Bluffs, Iowa, at +25H; Cedar Rapids, Iowa, at -45H; Sioux City 10 cents weaker at -10H; Volga, South Dakota, at +10H; Lincoln, Nebraska, at +30H and Aberdeen, South Dakota, at -23H.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is 43 cents under the March futures, 1 cent stronger than Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Monday is 30 cents under the Kansas City March futures, 1 cent stronger than Friday's basis. The KC spot cash premiums were steady to higher, as mill demand remains solid. Premium for ordinary protein through 11.8% protein was unchanged at +163, 12% through 12.4% was up 13 cents at +177, 12.6% through 14% premiums were up 2 cents at +177. The 11% protein bid at the Texas Gulf was steady at +180, and the PNW bid for 11.5% protein is at +205. Gulf track bid for ordinary protein is at +160 with a 1-cent premium for 11% through 11.8% and a 2-cent premium for 12%+ proteins.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is 19 cents under the Minneapolis March futures, 2 cents stronger than Friday'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 not quoted, 14% proteins were down 60 cents to unchanged at +140* to +240; 14.5% proteins were not quoted; 15% proteins were down 110 to unchanged at +190* to +300N, and 16% proteins were not quoted. Wheat receipts on the exchange floor were 55 cars, which included two train(s).* Bid (B), Ask(A), Nominal(N). MGEX Daily Grain Prices are Delivered Chicago/Beyond freight: 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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