DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 8 cents under the May futures contract while the DTN National Corn Index was up 14 cents at $5.86. The national average basis for soybeans was 1 cent stronger at 25 cents under the May futures contract while the DTN National Soybean Index was up 22 cents at $13.85. The national average basis for HRW wheat was unchanged at 23 cents under the May futures contract while the DTN National Hard Red Winter Wheat Index was up 19 cents at $5.80. The national average basis for HRS wheat was unchanged at 28 cents under the May futures contract while the DTN National Hard Red Spring Wheat Index was up 12 cents at $6.33.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$5.86	$0.14	-$0.08	May	$0.000
Soybeans:	$13.85	$0.22	-$0.25	May	$0.011
SRW Wheat:	$6.31	$0.19	-$0.17	May	$0.010
HRW Wheat:	$5.80	$0.19	-$0.23	May	$0.002
HRS Wheat:	$6.33	$0.12	-$0.28	May	$0.002

CORN:

The national average corn basis for Wednesday is at 8 cents under the May futures, unchanged from Monday's basis. May corn closed up 14 cents while making a new contract high and led the other contract months on the day. Weather in Brazil remains a supportive feature as dry conditions will continue to stress the second crop. In the U.S., expectations are for mostly dry weather in the Corn Belt amid colder temperatures. The data from the EIA was mildly supportive, but with lower production numbers last week, that likely slowed corn demand. Still, cash corn prices, including basis, is proving that old-crop corn demand remains solid for domestic and export markets. Track PNW basis was 10 cents weaker, with the deferred months of June and July showing strength. Secondary shuttle freight has not backed down for April with bids at $300 per car over tariff against offers of $500 over. Meanwhile, first-half May is bid $50 over against offers of $150 over, while last-half May is bid at $150 over against offers of $300. The strongest demand right now continues to come from ethanol plants, and they are willing to pay competitive prices to other markets to procure old-crop corn.

SOYBEANS:

The national average soybean basis for Wednesday is at 25 cents under the May futures, 1 cent stronger than Monday's basis. May soybeans closed up 20 1/2 cents as soybean oil posted another strong close of 1.21 cents. Crude and other vegetable oil markets posted sharp gains on the day, an overall supportive feature for soybeans. The soybean market also found support from the strength in the corn market due to concerns over dry weather in parts of Brazil that could have a negative effect on the second corn crop. Here in the U.S., old-crop soybeans remain in demand, and the cash basis is proof of that. Processor basis was 3 cents stronger in northeast Indiana, 10 cents stronger in east-central Iowa and southeast South Dakota and 11 cents stronger in east-central South Dakota. Farmers are reporting that they are seeing positive basis numbers in areas that normally post basis under the current futures. There is not much else going on with basis as far as export markets right now as the main demand remains domestic driven.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 17 cents under the May futures, 1 cent stronger than Monday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 23 cents under the Kansas City May futures, unchanged from Monday's basis. The KC May closed up 18 3/4 as traders are concerned at possible damage in new-crop HRW wheat in western Kansas and eastern Colorado from subfreezing temperatures. The market is also watching the Russian/Ukraine tensions that may slow exports out of the Odessa port should they escalate. Mills paid up on KC spot cars midweek, with 12% through 12.8% protein premiums up 2 cents and 13% through 14% up 4 cents. The Philippines are tendering for 165,000 metric tons of feed wheat in addition to 300,000 metric tons of feed and milling wheat.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 28 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 not quoted; 13% proteins were not quoted; 13.5% proteins were unchanged to up 5 at +125N to +130; 14% proteins were down 25 cents to down 5 cents at +120 to +140; 14.5% proteins were at +130*; 15% proteins were at +150. Receipts were 57 cars, which included one 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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