DTN Daily Basis Comments

DAILY BASIS:

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.26	-$0.04	-$0.37	May	$0.006
Soybeans:	$8.62	-$0.01	-$0.76	May	$0.000
SRW Wheat:	$3.86	$0.02	-$0.41	May	$0.023
HRW Wheat:	$3.30	$0.03	-$0.92	May	$0.006
HRS Wheat:	$4.87	-$0.05	-$0.41	May	-$0.015

CORN:

The DTN National Corn Index for Tuesday indicated a national average basis of 37 cents under the Chicago May futures contract, 1 cents stronger than Monday's basis. Corn came under pressure from profit taking as some of the market focus turns once again to (the second corn crop) safrina corn in heavy producing Mato Grosso and Parana states showing no signs of any weather related issues for now. In the U.S., while there are expectations for some planting delays in the southern areas of the Midwest and in the south central Delta area, it may be too premature to push the panic button yet this early in April. Basis is firm, but it doesn't really matter at this point due to the cheap flat price. Plus, farmers are too busy to care right now as they get ready for spring field work. Gulf and St. Louis basis was weaker as barge freight gets cheaper. River conditions are good with some concern over high water on the Illinois River, but so far tows are moving down river without any trouble.

SOYBEANS:

The DTN National Soybean Index for Tuesday indicated a national average basis of 76 cents under the Chicago May futures contract, unchanged from Monday's basis. Soybeans were slightly lower, still feeling pressure from Brazil as harvest wraps up and production estimates increase. Brokerage firm Labhoro raised its forecast to 113.9 million metric tons on Monday, vs. their March 21 estimate of 109.8 million. With expectations for a larger than expected crop in South America and the U.S., the market is unable to find much support to give it a positive outlook right now. Basis on the river is mixed, but demand is slowing for soybeans heading south for export. Processor basis was also mixed and most plants are still seeing decent crush margins as meal demand has been steady.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Tuesday indicated a national average basis of 41 cents under the Chicago May futures, 2 cents stronger than Monday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter Wheat Index for Tuesday indicated a national average basis of 92 cents under the Kansas City May futures contract, unchanged from Monday's basis. It was another rough day on the KC spot market with 11.4% and 12% through 12.8% proteins 4 cents weaker. Ords actually saw an 8 cent increase as the lower protein HRW wheat is still somewhat attractive in the export market out of the Gulf and the PNW as well. Weather will be the key factor influencing the cash price going forward.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Tuesday indicated a national average basis of 41 cents under the Minneapolis May futures contract, 2 cents weaker than Monday'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 not quoted; 13% proteins were not quoted; 13.5% proteins were unchanged to down 5 cents +65 to +70; 14% proteins were unchanged at +75N to +85N; 14.5% proteins were unchanged to up 5 cents at +95N to +105 and 15% proteins were unchanged at +125 to +130N. Receipts were 51 cars, which included one train.* 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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