DTN Daily Basis Comments

Thursday Morning Basis Update

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 11 cents under the March futures contract while the DTN National Corn Index was 2 cents weaker at $3.59. The national average basis for soybeans was 1 cent stronger at 46 cents under the March futures contract while the DTN National Soybean Index was up 3 cents at $8.35. The national average basis for HRW wheat was 2 cents stronger at 23 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index was down 1 cent at $4.30. The national average basis for HRS wheat was 6 cents stronger at 9 cents under the March futures contract while the DTN National Hard Red Spring Wheat Index was up 5 cents at $5.07.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $3.59 -$0.02 -$0.11 Mar $0.003
Soybeans: $8.35 $0.03 -$0.46 Mar $0.008
SRW Wheat: $5.32 $0.01 -$0.08 Mar -$0.002
HRW Wheat: $4.30 -$0.01 -$0.23 Mar $0.022
HRS Wheat: $5.07 $0.05 -$0.09 Mar $0.061

CORN:

The national average corn basis for Wednesday is at 11 cents under the March futures, 1 cent stronger than Tuesday's basis. March corn was down 2 cents at midweek, as little fresh news gave the market a reason to move higher. Weekly inventory and production data from EIA did little to help the corn market. Even though inventory finally showed a slight drop, cash ethanol prices continue to move lower, as supplies are plentiful. That, and another day of lower ethanol futures, isn't helping plant margins. Corn needs some fresh export business and more than just a few cargoes. The strength in the PNW basis would suggest there is nearby demand off the West Coast. Basis for shuttles delivered to the Pacific Northwest is steady, while secondary shuttle freight has moved lower again, Bids for March are at -$250 per car below tariff and offers are at -$150 per car. Ethanol plant basis is mixed again with east central Illinois basis 2 cents stronger, central Illinois 5 cents stronger, southern Minnesota 1 cent weaker and east-central Nebraska 4 cents weaker.

SOYBEANS:

The national average soybean basis for Wednesday is at 4 cents under the March futures, 1 cent stronger than Tuesday's basis. March soybeans closed 2 cents higher at midweek, but the market is still trying to find direction. As Brazil soybean harvest progresses, there is still concern in the market over what impact coronavirus will have on U.S. purchases by China. News from Argentina's Ministry of Agriculture that it suspended registration of agricultural exports was supportive to futures in that should Argentina raise export taxes, that move could help U.S. exports. Soybean oil futures continued lower along with the weakness in other vegetable oil and crude oil markets. The track PNW shuttle basis was weaker and Gulf offers were 1 cent weaker. Besides a lack of fresh business, the Lower Mississippi River is still experiencing high water conditions all the way and in to the Gulf. The Mississippi River at Baton Rouge is above major flood stage at 41.6 feet and is expected to crest at 42.1 feet around March 5.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 8 cents under the Chicago March futures, unchanged from Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 23 cents under the Kansas City March futures, 2 cents stronger than Tuesday's basis. March KC futures closed down 2 3/4 cents and spot KC basis for 11% through 11.2% was 9 cents weaker. The futures market has lost ground in the last five out of six sessions and there is the likelihood that trend could continue, as there isn't enough fresh news to move the market higher.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 9 cents under the Minneapolis March futures, 6 cents stronger than Tuesday's basis. The Minneapolis spot spring 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 not quoted; 13.5% proteins were not quoted; 14% proteins were up 10 to up 15 cents at +135B to +150; 14.5% proteins were not quoted and 15% proteins were up 15 cents to up 10 cents at +145 to +170. Receipts were 42 cars, which includes zero trains.* (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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Mary Kennedy

Mary Kennedy
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