DTN Daily Basis Comments
Friday Morning Basis Update
The national average basis for corn was 2 cents weaker at 22 cents under the May futures contract while the DTN National Corn Index was up 8 cents at $3.23. The national average basis for soybeans was 1 cent stronger at 48 cents under the May futures contract while the DTN National Soybean Index was up 18 cents at $7.95. The national average basis for HRW wheat was unchanged at 24 cents under the May futures contract while the DTN National Hard Red Winter Wheat Index was up 19 cents at $4.42. The national average basis for HRS wheat was 1 cent stronger at 12 cents under the May futures contract while the DTN National Hard Red Spring Wheat Index was up 12 cents at $5.03.
| DTN Cash | Change From | National | Contract | Change from | |
| Commodity | Index | Prev Day | Avg. Basis | Month | Prev Day |
| Corn: | $3.23 | $0.08 | -$0.22 | May | -$0.018 |
| Soybeans: | $7.95 | $0.18 | -$0.48 | May | $0.006 |
| SRW Wheat: | $5.24 | $0.26 | -$0.11 | May | -$0.008 |
| HRW Wheat: | $4.42 | $0.19 | -$0.24 | May | $0.000 |
| HRS Wheat: | $5.08 | $0.12 | -$0.12 | May | $0.012 |
The national average corn basis for Thursday is at 22 cents under the May futures, 2 cents weaker than Wednesday's basis. May corn closed up 10 1/4 cents Thursday, a welcome sight on the first day of spring, as all the grain and oilseed markets posted higher closes as well. While corn followed the soy and wheat complexes higher, the elephants in the room remain in the form of still depressed oil, gasoline and ethanol markets. Cash corn is in the process of retreating because of weaker basis this week as ethanol plants have widened their bids as much as 30 cents recently, or in some cases, pulled bids all together. That has caused a trickledown effect for corn basis overall as farmers need to find new or better homes to take their corn to, as they clean out bins to prepare for spring's work. Just to give you an idea of how much cash corn has retreated in one month, the DTN National Corn Index on Feb. 18 was at $3.71 (-12 basis) and the index at the close of March 19 was at $3.23 (-22 basis).
SOYBEANS:The national average soybean basis for Thursday is at 48 cents under the May futures, 1 cent stronger than Wednesday's basis. May soybeans closed up 17 3/4 cents, as May soybean meal led the charge reaching a new four-month high. USDA Weekly Export Sales and Shipment report noted that the week ended March 12, there was increase of 23.2 million bushels (mb) of soybean export sales for 2019-20 and an increase of 2.6 mb for 2020-21, but total commitments for the current crop year are down 16%. One development the market is watching is the impact coronavirus is having on port activity in South America and the effect, if any, it may have on meal and bean exports there. There was a good sign that some soybean business was done at the Pacific Northwest, as track PNW shuttle basis was 6 cents stronger and same situation at the Gulf, with basis 9 cents stronger. Secondary shuttle freight costs narrowed as well, with April now bid at -$150 per car below tariff and offers at -$100 per car below tariff.
The national average SRW wheat basis for Thursday is at 11 cents under the Chicago May futures, unchanged from Wednesday's basis.
HARD RED WINTER WHEAT:The national average HRW wheat basis for Thursday is at 24 cents under the Kansas City May futures, unchanged from Wednesday's basis. There were no cars sold on the KC spot market to test premiums, but the Gulf market is stronger as China has been reported buying U.S. HRW wheat there. The nearby domestic demand remains firm as flour mills look to replenish stocks due to the coronavirus related flour demand from consumers.
HARD RED SPRING WHEAT:The national average HRS wheat basis for Thursday is at 12 cents under the Minneapolis May futures, 1 cent stronger than Wednesday's basis. The Minneapolis spot spring 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 at +140N, +150N*; 14% proteins were unchanged at +160N; 14.5% proteins were unchanged at +140N and 15% proteins were down 5 cents to unchanged at +150, +170. Receipts were 30 cars, which includes 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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