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 4 cents at $5.03. The national average basis for soybeans was unchanged at 44 cents under the March futures contract while the DTN National Soybean Index was down 16 cents at $13.26. 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 down 7 cents at $6.11. The national average basis for HRS wheat was unchanged at 28 cents under the March futures contract and the DTN National Hard Red Spring Wheat Index was down 6 cents at $6.09.
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The national average corn basis for Wednesday is at 19 cents under the March futures, unchanged from Tuesday's basis. March corn continued its downward mood, closing 4 cents lower at midweek. Better weather for Argentina in the 7-day forecast added pressure to the market. While the cash price remains high, ethanol plants continue to struggle with those high prices. Many plants have been said to slow runtimes and we will have a better idea when Wednesday's delayed EIA weekly energy report comes out on Jan. 22 due to the delay caused by MLK day on Monday and the inauguration on Wednesday. The track PNW basis was steady, while track St. Louis was 3 cents stronger and BNSF and UP secondary shuttle freight were unchanged. The basis seems to have settled into a comfortable spot right now after the rise in the cash corn market last week caused it to weaken.
The national average soybean basis for Wednesday is at 44 cents under the March futures, unchanged from Tuesday's basis. March soybeans closed down 16 1/4 cents Wednesday, falling lower for the third day in a row. DTN weather noted last week's moderate to heavy rainfall benefited reproductive to filling corn and soybeans in Brazil, while moderate to heavy showers occurred last week into the weekend in Argentina; however, dryness has set in this week. March soybean meal was down $8.10 but soybean oil closed up 84 cents, even as palm oil fell to a 2-month low. Track PNW shuttle basis was steady, while track St. Louis was 2 cents stronger. Barge freight is starting to weaken on the nearby except along the Ohio River where barge lines note shippers are looking for spot barges. Processor basis is flat as crush margins continue to struggle.
SOFT RED WINTER WHEAT:
The national average SRW wheat basis for Wednesday is at 20 cents under the March futures, unchanged from Tuesday's basis.
HARD RED WINTER WHEAT:
The national average HRW wheat basis for Wednesday is at 26 cents under the Kansas City March futures, unchanged from Tuesday's basis. KC March futures closed down 7 cents, following the loss in corn and Paris milling futures. The market is looking for some fresh news to help it out and so far not much is available. Milling premiums are firming up as mills return to the buying table, while Texas Gulf basis was weaker. Other than our regular buyers, there isn't any fresh export business at this time as U.S. prices remain too high, especially due to freight costs.
HARD RED SPRING WHEAT:
The national average HRS wheat basis for Wednesday is at 28 cents under the Minneapolis March futures, unchanged from 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 unchanged at +95N; 13.5% proteins were up 10 cents at +120; 14% proteins were up 20 cents to unchanged at +105* to +120N; 14.5% proteins were up 20 cents at +100*; 15% proteins were unchanged to down 10 cents at +120N to +140. Receipts were 114 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 firstname.lastname@example.org
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