DAILY BASIS AND CASH INDEX SUMMARY:
The national average basis for corn was 1 cent weaker at 13 cents under the May futures contract while the DTN National Corn Index was down 10 cents at $5.25. The national average basis for soybeans was 1 cent stronger at 38 cents under the May futures contract while the DTN National Soybean Index was down 12 cents at $13.53. The national average basis for HRW wheat was 4 cents stronger at 28 cents under the May futures contract while the DTN National Hard Red Winter Wheat Index was down 6 cents at $5.95. The national average basis for HRS wheat was 1 cent weaker at 34 cents under the May futures contract while the DTN National Hard Red Spring Wheat Index was down 6 cents at $6.00.
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The national average corn basis for Monday is at 13 cents under the May futures, 1 cent weaker than Friday's basis. May corn futures closed down 9 1/4 cents in spite of continued delays in the second corn crop planting in central Brazil because of ongoing rain. Pressure is coming from a lack of fresh export sales with the last daily announcement on Feb. 12 along with a higher U.S. dollar to start the week. Weekly corn inspections showed total inspections in 2020-21 are up 81% from the previous year and slightly higher than the total reported one week ago. The track Pacific Northwest basis was unchanged, while track St. Louis was steady and CIF GULF basis was 4 cents weaker. BNSF secondary freight was higher with first half March bid at $150 per car over tariff against unchanged offers of $300 over and last half March was higher, bid at even money against unchanged offers of $200 over. Ethanol plant basis was seeing strength thanks to better weather and improved logistics. A plant in south central Nebraska posted a 10-cent stronger basis, southern Minnesota was 5 cents stronger and south east South Dakota was 9 cents stronger. Farmers have been hauling contracted corn off the farm before the warmup comes this week and causes soft roads.
The national average soybean basis for Monday is at 38 cents under the May futures, 1 cent stronger than Friday's basis. May soybeans closed down 13 cents, under some pressure from news that 25% of Brazil's soybean crop was harvested as of Thursday, continuing to advance as weather allows. There is still uncertainty in the market as to the impact of the late harvest on new-crop soybean shipments out of Brazil ports and also what effect the dry weather in Argentina is having on the crop. Soybean oil also pushed lower, down 71 cents in the May. Weekly inspections for the week ending Feb. 25 shows total inspections in 2020-21 are now up 76% from the prior year. There is still no basis posted on the PNW until September, while track St. Louis and CIF Gulf basis was steady. Weekend rains have helped increase water levels at St. Louis and the Lower Mississippi, but the Ohio River levels have become too high and some shippers will likely have to stop loading. The ice problems on the Illinois River are nearly gone and there are plenty of empties heading to shippers this week, keeping barge freight stagnant for nearby. Processor basis was firm as it moved over to the May futures, with crushers looking for nearby beans.
SOFT RED WINTER WHEAT:
The national average SRW wheat basis for Monday is at 22 cents under the May futures, 1 cent weaker than Friday's basis.
HARD RED WINTER WHEAT:
The national average HRW wheat basis for Monday is at 28 cents under the Kansas City May futures, 4 cents stronger than Friday's basis. The KC May futures closed down 10 1/2 cents, under pressure from export inspections and the losses in the corn market. U.S. wheat is not a player in the export market because our prices remain high, and then there is that problem of higher ocean freight holding us back. PNW 11.5% basis was unchanged, but Texas Gulf ords basis was 5 cents stronger.
HARD RED SPRING WHEAT:
The national average HRS wheat basis for Thursday is at 34 cents under the Minneapolis May futures, 1 cent weaker Friday'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 at +100; 14% proteins were unchanged at +120N; 14.5% proteins were unchanged at +100N to +110N; 15% proteins were unchanged at +145N. Receipts were 7 cars, which included zero trains.* (Bid=B Ask=A Nominal=N) Wheat on the MGEX floor is traded delivered Chicago/beyond.
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