DTN Daily Basis Comments

Wednesday 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 5 cents at $5.07. The national average basis for soybeans was unchanged at 44 cents under the March futures contract while the DTN National Soybean Index was down 31 cents at $13.42. The national average basis for HRW wheat was unchanged at 26 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index was up 1 cent at $6.18. The national average basis for HRS wheat was 1 cent weaker at 28 cents under the March futures contract and the DTN National Hard Red Spring Wheat Index was unchanged at $6.16.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.07 -$0.05 -$0.19 Mar $0.005
Soybeans: $13.42 -$0.31 -$0.44 Mar $0.005
SRW Wheat: $6.52 -$0.03 -$0.20 Mar $0.003
HRW Wheat: $6.18 $0.01 -$0.26 Mar $0.002
HRS Wheat: $6.16 $0.00 -$0.28 Mar -$0.006

CORN:

The national average corn basis for Tuesday is at 19 cents under the March futures, unchanged from Friday's basis. March corn started the short week closing down 5 1/2 cents Tuesday after beneficial rains in Brazil and Argentina over the weekend added pressure in spite of fresh business announced Tuesday morning. USDA announced that private exporters sold 128,000 metric tons (mt) of corn for delivery to Japan during the 2020-21 marketing year and 100,000 mt of corn for delivery to Israel during the 2020-21 marketing year. In addition, weekly export inspections noted that total 2020-21 inspections now are up 82% from the prior year. The track PNW basis was steady at +105H for January while CIF NOLA basis was 4 cents weaker. BNSF secondary shuttle freight has moved higher again with January bid at $300 per car over tariff against offers of $600 over and February at $500 per car over tariff against offers of $800. UP secondary freight is also higher with January bid at $400 per over tariff against offers of $600 over and February bid at $300 over against offers of $600.

SOYBEANS:

The national average soybean basis for Tuesday is at 44 cents under the March futures, unchanged from Friday's basis. March soybeans closed down 31 cents as improvements in South America weather and sharp losses in palm oil pressured the market. The most recent Malaysian SGS cargo surveyor report indicated a 43.3% drop in exports from Jan. 1 to Jan. 20 versus last month. March soybean meal was down $12.70 and soybean oil was down 15 cents. Early Tuesday morning the USDA reported private exporters sold 132,000 mt of soybeans for delivery to China during the 2021-22 marketing year. Track PNW basis is steady for February at +110H, while CIF NOLA basis was 1 cent stronger for February. River basis remains steady overall as barge freight remains quiet. Barge lines report logistics on the Illinois River have improved with delays at Lagrange Lock easing and warm weather keeping the ice away for now.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Tuesday is at 20 cents under the March futures, unchanged from Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Tuesday is at 26 cents under the Kansas City March futures, unchanged from Friday's basis. The KC March closed up 1 cent as some talk circulated that Argentina may be looking at possible restrictions on wheat exports similar to what they did on corn, according to traders. The Texas Gulf and PNW basis has been steady, while mills paid up for higher proteins on the KC spot market with 13% through 14% proteins up 20 cents.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is at 28 cents under the Minneapolis March futures, 1 cent weaker than Friday'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 +95N; 13.5% proteins were up 20 cents at +110; 14% proteins were unchanged to up 5 cents at +85N to +120; 14.5% proteins were unchanged at +80N; 15% proteins were up 30 cents to up 10 cents at +120* to +150. Receipts were 54 cars, which includes one 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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