DTN Daily Basis Comments

Thursday 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 is 1 cent stronger at 10 cents over the March futures contract, while the DTN National Corn Index is up 1 cent at $6.66. The national average basis for soybeans is 1 cent weaker at 27 cents under the March futures contract while the DTN National Soybean Index is up 8 cents at $14.66. The national average basis for hard red winter (HRW) wheat is 1 cent weaker at 32 cents under the March futures contract while the DTN National Hard Red Winter Wheat Index is up 9 cents at $7.90. The national average basis for hard red spring (HRS) wheat is 3 cents weaker at 23 cents under the March futures contract while the DTN National Hard Red Spring Wheat Index is up 2 cents at $8.77.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $6.66 $0.01 $0.10 Mar $0.004
Soybeans: $14.66 $0.08 -$0.27 Mar -$0.003
SRW Wheat: $6.96 $0.09 -$0.44 Mar $0.000
HRW Wheat: $7.90 $0.09 -$0.32 Mar -$0.010
HRS Wheat: $8.77 $0.02 -$0.23 Mar -$0.023

CORN:

The national average corn basis for Wednesday is 10 cents over the March futures, 1 cent stronger than Tuesday's basis. The PNW basis for January is 5 cents weaker at +160H, while February is 5 cents weaker at +150H. Hereford basis is 5 cents weaker at +160H for January, while February is 5 cents weaker at +150H. CIF NOLA for January is 4 cents weaker at +88H while track St. Louis is steady at +30H for January. The water level at St. Louis is at +1.09 feet above zero gauge and is expected to fall below zero gauge by middle of next week without rain. The gauge at Memphis is at +16.78 feet and levels will rise to +17 feet Friday and then start to slowly fall. Processors' bids are steady to mixed, with Cedar Rapids, Iowa, 4 cents weaker at -5H; Fort Dodge, Iowa, is at +43H; Council Bluffs, Iowa, is 3 cents weaker at +45H; Blair, Nebraska, is at +50H; Lincoln, Nebraska, is at +30H; Hastings, Nebraska, is at +10H; Mitchell, South Dakota, is at +10H; Garden City, Kansas, is steady at +115H; and Marshall, Minnesota, is at +13H. BN secondary shuttle freight for returns is bid $500 per car over tariff against no offers, and January is bid +400 over against offers of $650 per car, and first-half February is bid $200 against offers of $600. UP secondary freight is not bid or offered for returns, while January is bid $250 against offers of $350.

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SOYBEANS:

The national average soybean basis for Wednesday is 27 cents under the March futures, 1 cent weaker than Tuesday's basis. The PNW basis for first-half January is steady at +235H and last-half is steady at +225H. CIF NOLA basis for January is steady at +127H with a 15-cent inverse to February and track St. Louis is steady at +56H for January and +54H for February. ACBL on their website noted, "Dry loading drafts to 11' SBD for barges loading St. Louis through Cairo and will reevaluate Wednesday 1/11. Drafts currently 9' for NBD barges transiting to/through the St. Louis area; roughly 25-32% below normal drafts." River basis north of St. Louis on the Mississippi River at Quincy, Illinois, is at +5H; while basis on the Illinois River at Havana, Illinois, is at +22. Processor basis for January is steady, with Mankato, Minnesota, is at -15H; Council Bluffs, Iowa, is at +30H; Cedar Rapids, Iowa, is at -35H; Sioux City is steady at +10H; Volga, South Dakota, is at option the March; Lincoln, Nebraska, is at +40H and Aberdeen, South Dakota, is at -13H.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is 44 cents under the March futures, unchanged from Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is 32 cents under the Kansas City March futures, 1 cent weaker than Tuesday's basis. The KC spot cash premiums were steady to higher and mills are now keeping an eye open as talk surfaced HRW wheat may work into the Eastern Corn Belt as feed wheat. Premium for ordinary protein through 11.6% was steady at +140, 11.8% protein through 12.4% was steady at +151, 12.6% through 12.8% was steady at +155 and 13% through 14% premiums were up 4 cents at +165. The 11% protein bid at the Texas Gulf was steady at +195 and the PNW bid for 11.5% protein was down 5 cents at +205. Gulf track bid for ordinary protein is up 6 cents at +160 with a 1-cent premium for 11% through 11.8% and a 3-cent premium for 12%+ proteins. Egypt bought 120,000 metric tons (mt) of Russian wheat (no surprise there), South Korea is tendering today for 50,000 mt of milling wheat, Turkey is tendering for 565,000 mt of milling wheat today, Taiwan is in for 45,000 mt of U.S. milling wheat on Friday and Japan is tendering on Friday for 89,000 mt of milling wheat of which 40,000 mt will be U.S. DNS and White wheat.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is 23 cents under the Minneapolis March futures, 3 cents weaker than Tuesday's basis. The Minneapolis spot spring wheat cash premiums closed as follows, based on Minneapolis March futures: 12% proteins were not quoted, 13% proteins were at +150B* to +180A*, 13.5% proteins were not quoted, 14% proteins were unchanged at +215N to +240; 14.5% proteins were not quoted; 15% proteins were unchanged at +220N to +285, and 16% proteins were not quoted. Wheat receipts on the exchange floor were 33 cars, which included one train(s).* Bid (B), Ask(A), Nominal(N). MGEX Daily Grain Prices are Delivered Chicago/Beyond freight: Spot No. 1 Milling Northern/Dark Northern Spring Wheat.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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Mary Kennedy

Mary Kennedy
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