DTN Daily Basis Comments

Morning Basis Comments

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 12 cents under the May futures contract while the DTN National Corn Index was up 2 cents at $5.39. The national average basis for soybeans was 1 cent stronger at 33 cents under the May futures contract while the DTN National Soybean Index was up 6 cents at $13.90. 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 up 4 cents at $5.57. The national average basis for HRS wheat was unchanged at 31 cents under the May futures contract while the DTN National Hard Red Spring Wheat Index was up 5 cents at $5.99.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $5.39 $0.02 -$0.12 May -$0.003
Soybeans: $13.90 $0.06 -$0.33 May $0.006
SRW Wheat: $6.12 $0.06 -$0.22 May -$0.010
HRW Wheat: $5.57 $0.04 -$0.25 May $0.004
HRS Wheat: $5.99 $0.05 -$0.31 May $0.006

CORN:

The national average corn basis for Tuesday is at 12 cents under the May futures, unchanged from Monday's basis. May corn turned higher Tuesday, closing up 2 1/4 cents as the cash price remains firm given the recent batch of export sales. Domestic demand is also solid as end users are looking to buy old-crop corn ahead of farmers disappearing into the fields for spring work and planting. Track PNW shuttle basis remains steady, while track St. Louis was 3 cents weaker and CIF NOLA was 1 cent weaker. Domestic demand remains the on top as ethanol plants scramble for corn to run plants, but farmers just aren't in the mood right now to sell. Basis is working hard and the futures are trying as well, but still not much if any selling. The corn market is not competing on the feed side of the equation as cheap hard red winter wheat is filling that void.

SOYBEANS:

The national average soybean basis for Tuesday is at 33 cents under the May futures, 1 cent stronger than Monday's basis. May soybeans closed up 5 3/4, once again finding support in the rising soybean oil futures which were up 0.65 cent Tuesday. Strength in soybean oil was impressive given the sharp drop in crude oil, but stronger crush margins and tight U.S. soybean supplies are adding support. Even as Brazil harvest picks up as weather there improves, the tight supply situation in the U.S. will remain the biggest issue for soybean end users. Processor basis in south-central Nebraska was 1 cent stronger, 7 cents stronger in east-central Kansas and 5 cents stronger in east-central South Dakota and southern Minnesota.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Tuesday is at 22 cents under the May futures, 1 cent weaker than Monday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Tuesday is at 25 cents under the Kansas City May futures, unchanged from Monday's basis. KC May futures were up 3 3/4 cents after a rough start Tuesday and closing 15 1/2 cents off the low. Old-crop HRW wheat continues to be the price maker, even above mills or export prices. However, mills jumped all over the spot cars Tuesday, paying up to secure them. The proteins premiums for 11.6% through 11.8% proteins was 10 cents stronger and 12% through 12.8% proteins were 6 cents stronger. Until new crop is ready to hit the market, the tug of war between end users could get interesting.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is at 31 cents under the Minneapolis May futures, unchanged from Monday'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

Mary Kennedy

Mary Kennedy
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