DTN Daily Basis Comments

Friday 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 weaker at 19 cents under the March futures contract while the DTN National Corn Index was up 9 cents at $5.15. The national average basis for soybeans was 1 cent weaker at 44 cents under the March futures contract while the DTN National Soybean Index was up 24 cents at $13.87. The national average basis for HRW wheat was unchanged at 27 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index was up 11 cents at $6.10. The national average basis for HRS wheat was unchanged at 27 cents under the March futures contract and the DTN National Hard Red Spring Wheat Index was up 11 cents at $6.13.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.15 $0.09 -$0.19 Mar -$0.005
Soybeans: $13.87 $0.24 -$0.44 Mar -$0.007
SRW Wheat: $6.51 $0.09 -$0.19 Mar -$0.001
HRW Wheat: $6.10 $0.11 -$0.27 Mar -$0.001
HRS Wheat: $6.13 $0.11 -$0.27 Mar -$0.005

CORN:

The national average corn basis for Thursday is at 19 cents under the March futures, 1 cent weaker than Wednesday's basis. March corn continued its wild ride Thursday, closing up 9 3/4 cents at another new contract high as the market is still feeling the bullish effects of the USDA reports from Tuesday. Good news for those who are long cash corn, but this approximately $1.04 jump in the cash corn price from one month ago is weighing on ethanol plant margins. The market is also finding support from a return to dry weather in Argentina next week, where rains have been hit and miss. Late Thursday, the Buenos Aires Grain Exchange said 16% of Argentina's corn crop was rated either poor or very poor. Weekly corn export sales and shipments were also supportive with commitments in 2020-21 up 135% versus one year ago. Track PNW shuttle basis was steady, while basis on the Illinois, Ohio and Mississippi rivers was weaker. Domestic basis was steady in many areas, with most of the weakness seen at ethanol plants, especially in spots where plants have slowed intake of corn.

SOYBEANS:

The national average soybean basis for Thursday is at 44 cents under the March futures, 1 cent weaker than Wednesday's basis. March soybeans closed up 24 1/4 cents Thursday following a bullish weekly soybean export sales and shipments report showing 33.4 million bushels (mb) of soybeans sold for export last week, with China listed as the top buyer and commitments in 2020-21 up 83% versus one year ago. Soybean meal was up $2.50 and soybean oil recovered and closed up 93 cents, despite another lower close in palm oil. The track PNW shuttle basis was steady, while track St. Louis basis was 2 cents stronger and river basis on the Illinois River and Mississippi River was weaker. Delays remain at Lagrange and Peoria locks on the Illinois River, while Starved Lock and Dam is seeing longer delays. Barge freight is creeping higher as grain movement picked up this week for both old and even some new-crop slots, sending shippers to the barge market to get some coverage.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Thursday is at 19 cents under the March futures, unchanged from Wednesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Thursday is at 27 cents under the Kansas City March futures, unchanged from Wednesday's basis. March KC wheat closed up 10 3/4, as the market continues to mull over the Russian grain tax announcement, hoping U.S. exports may benefit from that. Adding support is the concern cold weather descending on the Ukraine and Russia may cause damage to the wheat. Weekly wheat export sales and shipments came in below trade expectations, but total commitments for 2020-21 remain up 8% versus one year ago. Texas Gulf and PNW basis was steady, while milling premiums were not tested on the KC spot market Thursday.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Thursday is at 27 cents under the Minneapolis March futures, unchanged from Wednesday'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 unchanged at +105N; 13.5% proteins were down 15 cents at +90*; 14% proteins were down 10 cents to down 5 cents at +95* to +110*; 14.5% proteins were unchanged at +105N; 15% proteins were unchanged at +90N to +140N. Receipts were 113 cars, which includes four train(s). (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 her on Twitter @MaryCKenn

Mary Kennedy

Mary Kennedy
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