DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 37 cents under the March futures contract while the DTN National Corn Index was up 3 cents at $3.47. The national average basis for soybeans was 1 cent stronger at 88 cents under the January futures contract while the DTN National Soybean Index was up 7 cents at $8.24. The national average basis for HRW wheat was 2 cents weaker at 36 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index was down 3 cents at $4.69. The national average basis for HRS wheat was unchanged at 34 cents under the March futures contract while the DTN National Hard Red Spring Wheat Index was down 3 cents at $5.45.

DAILY BASIS CHART:

DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.47	$0.03	-$0.37	Mar	-$0.002
Soybeans:	$8.24	$0.07	-$0.88	Jan	$0.007
SRW Wheat:	$4.90	$0.02	-$0.32	Mar	$0.003
HRW Wheat:	$4.69	-$0.03	-$0.36	Mar	-$0.022
HRS Wheat:	$5.45	-$0.03	-$0.34	Mar	-$0.007

CORN:

The DTN National Corn Index for Tuesday indicated a national average basis of 37 cents under the Chicago March futures contract, unchanged from than Monday's basis. Corn closed higher with buying interest seen in a day of light trade. There was also spillover support from Monday's bullish corn inspections, giving the market a little boost on the day. Like soybeans, corn is looking for confirmation from China as to what their next move is as far as buying U.S. commodities. Basis for shuttles delivered to the PNW were unchanged while basis at ethanol plants were stronger in some areas where farmers have been slow to sell, even with the recent flat prices rallies.

SOYBEANS:

The DTN National Soybean Index for Tuesday indicated a national average basis of 88 cents under the Chicago January futures contract, 1 cent stronger than Monday's basis. Soybeans closed higher again Tuesday in spite of the stronger U.S. dollar and no real news of what China's intentions are to return to the U.S. market. Gains in soybean oil also added support to the market. Basis on the PNW is still nonexistent and buyers their have said it could take at least 30 to 45 days to execute any China business if and when they return. Processor basis was mixed depending on where plants need soybeans to crush. Some farmer selling was seen the past few days after the futures rally, but nothing in great amounts.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Tuesday indicated a national average basis of 32 cents under the Chicago March futures, 1 cent 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 36 cents under the Kansas City March futures contract, 2 cents weaker than Monday's basis. Basis remains firm in the early part of the new month as buyers have seen fewer applications at the start of the month, causing them to buy current needs market on the spot or in the to arrive market.. Tuesday's spot KC premiums for 12.4% through 12.8% were 3 cents stronger with no other proteins traded. Rumors surfaced Tuesday that China bought U.S. wheat, but the market didn't take the bait until it is in writing.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Tuesday indicated a national average basis of 34 cents under the Minneapolis March futures contract, unchanged from Monday'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 not quoted; 13.5% proteins were unchanged at +105N; 14% proteins were down 5 cents to up 10 cents at +120* to +135; 14.5% proteins were unchanged to down 5 cents at +115 to +120 and 15% proteins were unchanged to up 10 cents at +120 to +150. Receipts were 103 cars, which included two trains. (Bid=B Ask=A Nominal=N) Wheat on the MGEX floor is traded delivered Chicago/beyond.

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

Follow Mary Kennedy on Twitter @MaryCKenn

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