DTN Daily Basis Comments

DAILY BASIS:

DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.32	$0.08	-$0.36	Mar	-$0.006
Soybeans:	$9.60	$0.11	-$0.77	Mar	-$0.014
SRW Wheat:	$3.96	$0.12	-$0.37	Mar	-$0.007
HRW Wheat:	$3.47	$0.08	-$0.94	Mar	-$0.034
HRS Wheat:	$5.16	$0.07	-$0.38	May	$0.006

CORN:

The DTN National Corn Index for Wednesday indicated a national average basis of 36 cents under the Chicago March futures contract, 1 cent weaker than Tuesday's basis. The corn market moved 8 1/2 cents in the front month, a large jump considering the sluggish news so far this week. Corn got some help today from the chances for rain to return to central Argentina this week. There is also the likelihood that the market needed a boost to entice farmer selling, which has been a distant memory lately. Gulf basis was stronger as loadings have slowed the past week. PNW shuttle basis was 10 cents weaker at +90H, but shuttle freight isn't following the trend lower. Ethanol plant basis was weaker in some plants after the lower ethanol market and higher corn futures pinched margins a little.

SOYBEANS:

The DTN National Soybean Index for Wednesday indicated a national average basis of 77 cents under the Chicago March futures contract, 1 cent weaker than Tuesday's basis. Soybeans got a boost of some fresh demand even as the Brazil continues to harvest a large crop. USDA surprised the soybean market Wednesday with news of a 236,700 metric sale unknown destinations, with 170,700 metric tons of that for 2016-17 shipment. It's anyone's guess who it is, but China popped in to many minds. DTN Market Analyst Todd Hultman asked, "Is China out of town this week (Chinese New Year holiday) or hiding behind the curtains with the lights off?" Some processors posted stronger basis levels as farmers with old crop left are not willing to sell at this price. The PNW shuttle basis was 5 cents weaker, but river basis is firm for now. Most of the river is in good shape for barges, but there hasn't been many loaded this past week.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Wednesday indicated a national average basis of 37 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 94 cents under the Kansas City March futures contract, 4 cents weaker than Tuesday's basis. The KC spot market has been quiet all week, but if the cash price continues to rally we may see some movement. Rail basis has been favoring protein and quality as the market has seen less of that moving and more of the poor quality. On the export front, Algeria reportedly purchased about 585,000 metric tons of optional-origin milling wheat for April shipment. The U.S. may have been a part of that sale along with possibly Argentina and Black Sea origins. Iraq has extended its pending wheat import tender to February 12 and removed the origin clause of only US, Canadian, and Australian wheat and changed it to optional origin.

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 May futures contract, unchanged from Tuesday's basis. The Minneapolis spot HRS wheat cash market closed as follows, basis the Minneapolis May futures contract for No. 1 milling quality: 12% proteins were +60B to +70A; 13% proteins were not quoted; 13.5% proteins were up 5 cents to up 10 cents at +75B to +80; 14% proteins were up 5 cents to unchanged at +85B to +115; 14.5% proteins were not quoted and 15% proteins were down 20 cents to unchanged at +130* to +155. Receipts were 56 cars, which included one trains.* Wheat on the MGEX floor is traded delivered Chicago/beyond. The basis for #1 DNS 14 protein delivered to the PNW was unchanged at +134H.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow Mary Kennedy on Twitter @MaryCKenn

(ES)

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