DTN Daily Basis Comments

DAILY BASIS:

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.18	$0.10	-$0.37	Mar	$0.010
Soybeans:	$9.48	$0.26	-$0.76	Mar	-$0.007
SRW Wheat:	$3.63	$0.18	-$0.46	Mar	$0.016
HRW Wheat:	$3.17	$0.17	-$1.02	Mar	$0.043
HRS Wheat:	$5.01	$0.13	-$0.38	Mar	$0.049

CORN:

The DTN National Corn Index for Tuesday indicates a national average basis of 37 cents under the Chicago March futures contract, 2 cents stronger than Friday's basis. In true holiday spirit, corn gave back nearly all of the losses from the pre-Christmas week. Export inspections were also considered bullish for corn which added strength to the market. Severe weather over much of the Midwest and Upper Plains over the weekend is causing logistical issues, especially out of North Dakota to the west coast, slowing trains. Farmers did sell a little on the Tuesday rally, but likely for delivery after the first of the year, especially in areas where yards are full of snow and roads are still slick. Basis was firm even with the jump in futures. The PNW basis was 2 cents stronger and shuttle turns have slowed from 2.5 to 2.3 per month in the past few weeks due to the heavy snow, cold and ice conditions in the Northern Plains.

SOYBEANS:

The DTN National Soybean Index for Tuesday indicates a national average basis of 76 cents under the Chicago March futures contract, 1 cent weaker than Friday's basis. Soybeans came back from the long Christmas holiday weekend full of cheer, posting double digit gains in all trading months. Giving the market support was a bullish weekly export inspections report with the weekly volume above the same week last year, but the year to date volume was above current USDA expectations. Adding support is concern that northeastern Brazil remains dry as heavy rain is indicated for southern Brazil. Basis was weaker as farmers sold the rally, but basis along the river was firm. Low water conditions have hampered barges and levels at St. Louis were at 8.05 feet above zero gauge and ice conditions were hampering barges at Locks 24 and 25 as well as parts of the Illinois River.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Tuesday indicates a national average basis of 46 cents under the Chicago March futures, 2 cents stronger than Friday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter Wheat Index for Tuesday indicates a national average basis of $1.02 under the Kansas City March futures contract, 4 cents stronger than Friday's basis. The spot KC premiums were weaker with 12 proteins 13 cents weaker and 12.4 and 12.6 proteins 5 cents weaker. Mills are pretty content for the week, but domestic basis remains firm. Export inspections were above expectations and favored winter wheat, which gave the cash price a boost.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Tuesday indicates a national average basis of 38 cents under the Minneapolis March futures contract, 5 cents stronger than Friday's basis. The Minneapolis spot HRS wheat cash market closed as follows, basis the Minneapolis March futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were down 10 cents to unchanged at +100 to +110N; 13.5% proteins were up 20 cents up 15 cents +110; 14% proteins were unchanged at +115N to +135N; 14.5% proteins were unchanged at +150 and 15% proteins were up 10 cents to up 15 cents at +160 to +165. Receipts were 29 cars, which included one trains.* 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)

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