DTN Daily Basis Comments

Tuesday 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 unchanged at 19 cents under the March futures contract while the DTN National Corn Index was down 3 cents at $5.12. The national average basis for soybeans was unchanged at 44 cents under the March futures contract while the DTN National Soybean Index was down 14 cents at $13.72. The national average basis for HRW wheat was 1 cent stronger at 26 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index was up 7 cents at $6.17. 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 3 cents at $6.16.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.12 -$0.03 -$0.19 Mar -$0.001
Soybeans: $13.72 -$0.14 -$0.44 Mar -$0.004
SRW Wheat: $6.55 $0.04 -$0.20 Mar -$0.015
HRW Wheat: $6.17 $0.07 -$0.26 Mar $0.003
HRS Wheat: $6.16 $0.03 -$0.27 Mar $0.002

CORN:

The national average corn basis for Friday is at 19 cents under the March futures, unchanged from Thursday's basis. Corn took a break from higher closes since midweek on Friday, with the March down 2 3/4. However, for the sixth consecutive week, corn has posted a gain to end the week and this week was impressive with a gain of 35 1/4 cents. The market traded slightly higher early in the day after USDA announced private exporters sold 110,000 metric tons (mt) of corn for delivery to Mexico during the 2020-21 marketing year. Even with a lower close, DTN's National Corn Index closed Thursday evening at a 7-year high, adding pressure to plants and feeders needing to pay this high price for cash corn and feed by-products. Track PNW shuttle basis was 5 cents stronger at +110H, while track St. Louis was 5 cents weaker. Secondary shuttle freight moved higher Friday with January bid at $400 per car over tariff against offers of $600, with February bid at $600 over against offers of $800 over.

SOYBEANS:

The national average soybean basis for Friday is at 44 cents under the March futures, unchanged from Thursday's basis. March soybeans closed down 13 3/4 on Friday, but for the week showed a large gain of 43 cents. Early Friday morning, USDA announced private exporters sold 318,000 mt of soybeans for delivery to unknown destinations during the 2021/2022 marketing year. Friday's NOPA crush report for December showed soybean crush at a record 183.159 million bushels (mb) and the second-highest crush on record, although below market expectations. Soybean oil had a rough day, down $1.26 as palm oil futures dropped 10% on the day after Malaysian Palm Oil Board reported record imports in December, keeping stocks from going lower than expected. March soymeal futures closed down $1.70, but for the week gained $23.60 and closed higher for a fifth straight week. Track PNW soybean basis was steady at +110H for first-half February, while CIF NOLA basis was unchanged. Barge freight was uneventful Friday as shippers seemed to be supplied for nearby needs. Illinois River basis was weaker as slowdowns remain at Peoria and LaGrange locks, while the Lower Mississippi River will see delays this week due to revetment operations, a process ahead of work which will be done to ensure proper navigation channel alignment.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 20 cents under the March futures, 1 cent weaker than Thursday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Friday is at 26 cents under the Kansas City March futures, 1 cent stronger than Thursday's basis. March KC was up 6 1/2 cents and for the week on Friday, posted a hefty gain of 48 1/2 cents, mainly due to the Russian export tax news announced during the week. Paris milling wheat futures also added support after reaching new highs. The KC milling premiums were weaker as the futures market surged for the week. The premium for 11.6 % proteins was 2 cents weaker and 11.8% through 12.8% premiums were 5 cents weaker.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 27 cents under the Minneapolis March futures, unchanged from Thursday'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 down 10 cents at +95*; 13.5% proteins were unchanged at +90N; 14% proteins were down 10 cents to up 5 cents at +85* to +115; 14.5% proteins were down 25 cents at +80; 15% proteins were unchanged at +90N to +140N. Receipts were 92 cars, which includes three 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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