DTN Daily Basis Comments
Friday Morning Basis Update
The national average basis for corn was 2 cents stronger at 33 cents under the May futures contract while the DTN National Corn Index was down 1 cent at $3.38. The national average basis for soybeans was 2 cents stronger at 94 cents under the May futures contract while the DTN National Soybean Index was down 5 cents at $8.16. The national average basis for HRW wheat was 4 cents stronger at 21 cents under the May futures contract while the DTN National Hard Red Winter Wheat Index was up 3 cents at $4.24. The national average basis for HRS wheat was 1 cent weaker at 33 cents under the May futures contract and the DTN National Hard Red Spring Wheat Index was up 4 cents at $5.26.
| DTN Cash | Change From | National | Contract | Change from | |
| Commodity | Index | Prev Day | Avg. Basis | Month | Prev Day |
| Corn: | $3.38 | -$0.01 | -$0.33 | May | $0.016 |
| Soybeans: | $8.16 | -$0.05 | -$0.94 | May | $0.016 |
| SRW Wheat: | $4.35 | -$0.05 | -$0.25 | May | $0.021 |
| HRW Wheat: | $4.24 | $0.03 | -$0.21 | May | $0.039 |
| HRS Wheat: | $5.26 | $0.04 | -$0.33 | May | -$0.009 |
The DTN National Corn Index for Thursday indicated a national average basis of 33 cents under the Chicago May futures contract, 2 cents stronger than Wednesday's basis. May corn closed down nearly 2 cents, a third day of losses and after a gallant try by trading higher during the day session. The market is now concerned that Brazil and Argentina will have larger corn harvests as beneficial rains continue to boost the crop. The corn market should see a pick-up in demand from the ethanol side as corn costs for ethanol plants remain cheap thanks to the ethanol futures not fading with the corn futures, causing ethanol margins so far this week to inch higher. Stronger ethanol cash prices due to a decline in production and weather-related transportation issues in some hubs are also supporting the market, another bullish sign for corn usage at plants. Feed markets remain steady as some areas of the Midwest have seen a slowdown in logistics slowing truck movement and high water on the Lower Mississippi River, slowing barges trying to get to the Gulf, which is also facing operation challenges due to flooding. Basis for shuttles delivered to the Pacific Northwest (PNW) was firm at +130H and Gulf basis was weaker as conditions on the river continue to hamper traffic. The Mississippi River is at dangerously high levels in the Lower Mississippi to the Baton Rouge. Safety protocols are in place such as daylight only docking/undocking midstream terminals. Daylight only movement is in place as well for tows moving through Baton Rouge, with a backlog of tows waiting to move.
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The DTN National Soybean Index for Thursday indicated a national average basis of 94 cents under the Chicago May futures contract, 2 cents stronger than Wednesday's basis. Soybeans were lower for the third day even after export sales reported for the week ended Feb. 21 came in better than expectations. However, total sales commitments remain 14% below one year ago and total exports of soybeans remain 32% below last year at this time. The market is still waiting to hear firm a commitment from China as to just how many U.S. soybeans they intend on purchasing. It will be interesting as to when those purchases will take place as the Brazil harvest is starting to head for export. The basis for shuttles delivered to the PNW remains firm at +57K as secondary shuttle freight rose to $2800 bid per car versus $3400 offered. Rail conditions to the PNW as well as to St. Louis have been hampered by winter storms and while conditions have started to improve, the lost travel time needs to be made up. Another round of severe cold is expected in the Northern Plains this weekend, which could hamper train movements. Basis in central Illinois is stronger as well as basis at many Midwest processing plants, another result of the recent winter storms making it hard for trucks to move.
SOFT RED WINTER WHEAT:The DTN National Soft Red Winter Wheat (SRW) Index for Thursday indicated a national average basis of 25 cents under the Chicago May futures, 2 cents stronger than Wednesday's basis.
HARD RED WINTER WHEAT:The DTN National Hard Red Winter Wheat (HRW) Index for Thursday indicated a national average basis of 21 cents under the Kansas City May futures contract, 4 cents stronger than Wednesday's basis. The spot KC basis for 11.6 protein was 8 cents stronger, 11.8% through 12.8% was 5 cents stronger and 13% through 14% was 2 cents stronger. Mills continue to buy up spot cars that show for sale as logistics have been hampered in the Southern Plains by poor weather. While export sales were decent, the continued fund selling in the KC futures pulled the cash price down once again. Even though the U.S. is expected to win much of the Saudi Arabia business of their 595,000 metric ton tender, the market doesn't seem to care right now.
HARD RED SPRING WHEAT:The DTN National Hard Red Spring Wheat (HRS) Index for Thursday indicated a national average basis of 33 cents under the Minneapolis May futures contract, 1 cent weaker than Wednesday's basis. The Minneapolis spot hard red spring wheat cash market closed as follows, basis the Minneapolis May futures contract for #1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were not quoted; 14% proteins were unchanged at 160N; 14.5% proteins were unchanged at +160* and 15% proteins were down 30 cents to up 5 cents at +140 to +175. Receipts were 64 cars, which included one train.* (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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