DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 12 cents under the May futures contract while the DTN National Corn Index was down 8 cents at $5.37. The national average basis for soybeans was 1 cent stronger at 34 cents under the May futures contract while the DTN National Soybean Index was up 2 cents at $13.83. The national average basis for HRW wheat was unchanged at 25 cents under the May futures contract while the DTN National Hard Red Winter Wheat Index was down 7 cents at $5.53. The national average basis for HRS wheat was 1 cent stronger at 31 cents under the May futures contract while the DTN National Hard Red Spring Wheat Index was down 1 cent at $5.95.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.37	-$0.08	-$0.12	May	$0.009
Soybeans:	$13.83	$0.02	-$0.34	May	$0.006
SRW Wheat:	$6.06	$0.00	-$0.21	May	-$0.005
HRW Wheat:	$5.53	-$0.07	-$0.25	May	$0.003
HRS Wheat:	$5.95	-$0.01	-$0.31	May	$0.002

CORN:

The national average corn basis for Monday is at 13 cents under the May futures, 1 cent stronger than Friday's basis. May corn started the week lower, down 8 3/4 cents despite favorable weekly export inspections showing as of the week ended March 18, total inspections in 2020-21 are now up 89% from the previous year. The market is looking at the favorable moisture in areas of the U.S. Corn Belt and a drier forecast anticipated for central Brazil. Dow Jones and the private firm Safras and Mercado said 86% of Brazil's second corn crop was planted, down from 90% a year ago and, with the dry weather, we should see more planting there this week. The track Pacific Northwest shuttle basis remained steady at +120K, while track St. Louis and Gulf basis was steady as well. Seeing bids in Upper Mississippi River terminals firm up as the river is fully open there. Secondary shuttle freight hasn't changed much and most of the demand is currently for the balance of March. Seeing ethanol plants start to push basis in some areas of the Midwest as it's still not an easy task to buy cash corn from the farmer right now.

SOYBEANS:

The national average soybean basis for Monday is at 34 cents under the May futures, 1 cent stronger than Friday's basis. May soybeans closed up 1 1/4 cents after soybean oil hit limit up. May soybean oil closed at 56.37 cents, up 2.50 cents, which is limit up for the market and closed at its highest price in eight years. Soybeans are also keeping watch on harvest progress in Brazil, with Dow Jones and the private firm, AgRural saying 59% of Brazil's soybean harvest was complete as of March 18, versus 66% a year ago. The drier forecast for central Brazil should give harvest a boost there, while more rain is expected in Argentina this week, but the early dryness may have compromised yields. Processor basis is the one to watch as plants are trying to procure whatever old crop is left, but farmers aren't selling. River terminal basis is steady to weaker as export demand is not great nearby and the PNW track shuttle basis remains posted for September forward. Conditions in St. Louis are improving slightly as levels have moved below the action stage, but flood conditions still exist in Vicksburg with levels hovering around the minor flood stage of 43 feet. Safety precautions will slow barges with expectations this will last there until and in the rest of the Lower Mississippi River until early April.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is at 21 cents under the May futures, unchanged from Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Monday is at 25 cents under the Kansas City May futures, unchanged from Friday's basis. May KC futures were down 7 1/4 cents as favorable moisture has descended on key winter wheat areas. Except for feeding and the occasional mills showing up to buy, winter wheat really has no other friends. Weekly inspections weren't bad, but nearly all of it was regular customers. U.S. winter wheat is cheap right now, but with increases in ocean freight, we may not be competitive.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 31 cents under the Minneapolis May futures, 1 cent stronger than 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 unchanged at 80N; 13% proteins were unchanged at 95N; 13.5% proteins were unchanged at +95N; 14% proteins were unchanged at +105N; 14.5% proteins were unchanged at +85N to +90N; 15% proteins were unchanged at +110N to +130N. Receipts were zero cars, which included zero 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

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