DAILY BASIS AND CASH INDEX SUMMARY:
The national average basis for corn was 1 cent stronger at 13 cents under the May futures contract while the DTN National Corn Index was down 6 cents at $5.36. The national average basis for soybeans was 1 cent stronger at 41 cents under the May futures contract while the DTN National Soybean Index was down 17 cents at $13.67. The national average basis for HRW wheat unchanged at 32 cents under the May futures contract while the DTN National Hard Red Winter Wheat Index was down 11 cents at $6.21. The national average basis for HRS wheat was 2 cents stronger at 35 cents under the May futures contract while the DTN National Hard Red Spring Wheat Index was down 5 cents at $6.16.
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The national average corn basis for Wednesday is at 17 cents under the May futures, 1 cent stronger than Tuesday's basis. May corn closed down 7 1/4 cents, pretty much in sync with the entire grain complex. Weekly export sales for corn showed for the week ended Feb. 18, current total commitments are still high, but weekly shipments were lower. The poor weather the past week added to a slowdown in loadings, and with China on holiday during that week, there was also nothing sold to them during that time. Track PNW basis was steady and secondary shuttle freight remains cheap for March, while track St. Louis was 2 cents weaker and ethanol plant basis was still flat overall.
The national average soybean basis for Wednesday is at 41 cents under the May futures, 1 cent stronger than Tuesday's basis. May soybeans closed down 18 1/4 cents, under pressure from weekly export sales coming in lower than what the trade had expected. The entire soybean complex saw a rash of selling on the day with May meal down $4.21, but soybean oil only saw an 18-cent drop. Central Brazil is still forecast to see wet weather in the next seven days, while harvest progress remains at its slowest pace in 10 years. Argentina continues its dry spell, which is affecting crop conditions. Late Thursday, the Buenos Aires Grain Exchange said 15% of Argentina's soybean crop was rated poor or very poor, up from 11% the previous week. Track St. Louis basis steady, while CIF NOLA basis was weaker. The St. Louis harbor saw heavy ice move in early Thursday that came down from the Missouri River, but conditions are expected to improve Friday afternoon. Some Midwest processers posted stronger basis levels to encourage cash movement after the futures pilled the cash price lower.
SOFT RED WINTER WHEAT:
The national average SRW wheat basis for Wednesday is at 23 cents under the May futures, unchanged from Tuesday's basis.
HARD RED WINTER WHEAT:
The national average HRW wheat basis for Wednesday is at 32 cents under the Kansas City May futures, unchanged from Tuesday's basis. May KC futures were down 10 1/2 cents as pressure came from weekly export sales coming in at a marketing year low as U.S. prices are too high to compete. Texas Gulf ords and PNW 11.5% basis was 5 cents weaker. SRW wheat has become cheaper than HRW wheat on a FOB basis, while on the interior, HRW is being fed in the Texas/Oklahoma panhandles according to analysts. Interesting to note as well is SWW wheat has moved in the feed market out on the PNW as a cheaper alternative to corn.
HARD RED SPRING WHEAT:
The national average HRS wheat basis for Wednesday is at 35 cents under the Minneapolis May futures, 2 cents stronger Tuesday'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 not quoted; 14% proteins were at +120; 14.5% proteins were at +100 to +110 and 15% proteins were at +140. Receipts were 11 cars, which includes zero train(s). (Bid=B Ask=A Nominal=N) Wheat on the MGEX floor is traded delivered Chicago/beyond.
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