DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 30 cents under the March futures contract while the DTN National Corn Index was up 4 cents at $3.52. The national average basis for soybeans was unchanged at 90 cents under the March futures contract while the DTN National Soybean Index was up 2 cents at $8.31. The national average basis for HRW wheat was unchanged at 24 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index was up 2 cents at $4.78. The national average basis for HRS wheat was unchanged at 39 cents under the March futures contract and the DTN National Hard Red Spring Wheat Index was up 3 cents at $5.33.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.52	$0.04	-$0.30	Mar	$0.002
Soybeans:	$8.31	$0.02	-$0.90	Mar	-$0.001
SRW Wheat:	$4.93	$0.04	-$0.24	Mar	$0.009
HRW Wheat:	$4.78	$0.02	-$0.24	Mar	$0.002
HRS Wheat:	$5.33	$0.03	-$0.39	Mar	-$0.006

CORN:

The DTN National Corn Index for Wednesday indicated a national average basis of 30 cents under the Chicago March futures contract, unchanged from Tuesday's basis. Corn was up 4 cents thanks to some help from the higher wheat markets and a lower U.S. dollar. It was a good day for the corn market given the EIA report showing another week of lower production at ethanol plants. On the flip side, the higher corn market doesn't bode well for plant margins as the ethanol cash market has been trading lower. However, the cash corn market remains firm as the extreme cold weather is making it hard for corn movement via truck or rail as demand remains strong for export. Basis for shuttles delivered to the Pacific Northwest remains firm, but rail movement to the PNW remains slow due to the extreme cold. The BNSF reported that the tracks near Bozeman, MT would reopen Thursday morning after Tuesday's derailment was cleared. Ethanol plant basis was 2 cents weaker in central Iowa, 3 cents weaker in east central Nebraska and 4 cents weaker in south east South Dakota. Margins have been weak due to the higher cash price of corn and the weakness in the ethanol cash market as inventory moved higher for the 5th week in a row according to the EIA.

SOYBEANS:

The DTN National Soybean Index for Wednesday indicated a national average basis of 90 cents under the Chicago March futures contract, unchanged from Tuesday's basis. Soybeans gained a few cents midweek, as the market remains in a sideways trend, waiting for fresh news. We will finally see a return to USDA export sales data on Thursday morning and again, the two Thursdays following, starting with the oldest and then covering what we missed during the government shutdown. The market is still waiting for the outcome of the U.S. and China trade talks with this week, hoping for a glimmer of hope in the results. Basis was pretty quiet as the Midwest is in the grips of extreme cold since Sunday, slowing cash movement off the farm and loadings at elevators. Basis on the Illinois River remains weak as ice has stopped movement on the river until conditions improve. The rail basis delivered to St. Louis was weaker as icing has become a problem for barges moving through the St. Louis Harbor.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Wednesday indicated a national average basis of 24 cents under the Chicago March futures, unchanged from Tuesday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter Wheat Index for Wednesday indicated a national average basis of 24 cents under the Kansas City March futures contract, unchanged from Tuesday's basis.The cash market found support from a weaker U.S. dollar. Basis remains firm at the Gulf and cash movement remains slow due to the cold weather. The market is interested in seeing the first round of export sales due out Thursday, but the numbers won't be up to date. The extreme cold weather is expected to cause stress on some of the unprotected wheat in the central and southern Plains and while it is still early, the market will keep an eye on it, especially given the lower planted acres last fall.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Wednesday indicated a national average basis of 38 cents under the Minneapolis March futures contract, unchanged from Tuesday's basis. The Minneapolis spot hard red spring 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 +120N; 13.5% proteins were unchanged at +120N; 14% proteins were unchanged at +120N to +140N; 14.5% proteins were unchanged at +120N to +130N and 15% proteins were unchanged to down 25 cents to unchanged at +115 to +125. Receipts were 15 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

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