DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 33 cents under the March futures contract while the DTN National Corn Index was down 1 cent at $3.15. The national average basis for soybeans was 1 cent weaker at 71 cents under the March futures contract and the DTN National Soybean Index was down 6 cents at $8.79. The national average basis for HRW wheat was unchanged at 46 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index was unchanged at $3.94. The national average basis for HRS wheat was unchanged at 20 cents under the March futures contract while the DTN National Hard Red Spring Wheat Index was down 5 cents at $6.09.

DAILY BASIS CHART:

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.15	-$0.01	-$0.33	Mar	-$0.006
Soybeans:	$8.79	-$0.06	-$0.71	Mar	-$0.009
SRW Wheat:	$4.01	-$0.02	-$0.32	Mar	-$0.006
HRW Wheat:	$3.94	$0.00	-$0.46	Mar	$0.000
HRS Wheat:	$6.09	-$0.05	-$0.20	Mar	-$0.002

CORN:

The DTN National Corn Index for Thursday indicated a national average basis of 33 cents under the Chicago March futures contract, unchanged from Wednesday's basis. Corn was slightly lower as fund selling and Friday's USDA report didn't give the market much to move higher on. Not much of a change for corn is expected in Friday's WASDE report for corn as Dec. 1 corn stocks are expected to total 12.41 billion bushels, a bit higher than one year ago. CIF Gulf basis was 2 cents stronger as icing issues continue to slow/block traffic on the Illinois River. ACBL noted that there is still limited movement on the Illinois with significant tow size reduction. One major trouble spot is the Marseilles Canal, around mile 245 where there is significant ice buildup making it difficult to transit. The Marseilles Lock queue is building, currently 12 boats.

SOYBEANS:

The DTN National Soybean Index for Thursday indicated a national average basis of 71 cents under the Chicago March futures contract, 1 cent weaker than Wednesday's basis. Soybeans continued its downward movement ahead of uncertainty over the USDA reports along with favorable weather in much of South America adding pressure to the market. The front month soymeal contract hit its lowest point since September 2017 which was also bearish for soybeans. Processor basis moved higher as the cash price falls with plants in southern Minnesota 3 cents stronger and 2 cents stronger in southwest Iowa. The PNW shuttle basis was 8 cents stronger as secondary freight has jumped to $400 per car on the bid side and $500 on the offer side. CIF Gulf basis was 3 cents stronger as river conditions have not improved. ACBL noted that the Ohio River closed Wednesday night at Lock 52/53 due to a barge grounding and USACE said it may take 48 hours to remove it.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Thursday indicated a national average basis of 32 cents under the Chicago March futures, unchanged from Wednesday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter Wheat Index for Thursday indicated a national average basis of 46 cents under the Kansas City March futures contract, unchanged from Wednesday's basis. All that showed up for sale on the KC was 12.4% which traded up 6 cents. The cash price was lower, mainly due to pressure from a dismal export sales and shipment report released Thursday. Thursday's report was a marketing-year low, with sales of 71,000 metric tons, well below expectations of 250,000 to 450,000 metric tons. Friday's USDA wheat seedings report is expected to show U.S. winter wheat at their lowest planted acres in over a century.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Thursday indicated a national average basis of 20 cents under the Minneapolis March futures contract, unchanged from Wednesday's basis. The Minneapolis spot HRS wheat cash market closed as follows, basis the Minneapolis March futures contract for #1 milling quality: 12% proteins were not quoted; 13% proteins were unchanged at +80N; 13.5% proteins were not quoted; 14% proteins were unchanged at +120N to +125N; 14.5% proteins were unchanged at +140N and 15% proteins were up 2 cents to up 17 cents at +19 to +210. Receipts were 22 cars, which included zero 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

(BAS)

Copyright 2018 DTN/The Progressive Farmer. All rights reserved.