DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 26 cents under the July futures contract while the DTN National Corn Index was up 2 cents at $2.93. The national average basis for soybeans was unchanged at 45 cents under the July futures contract while the DTN National Soybean Index was up 1 cent at $7.93. The national average basis for HRW wheat was 1 cent weaker at 26 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was unchanged at $4.27. The national average basis for HRS wheat was unchanged at 25 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was down 1 cent at $4.81.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$2.93	$0.02	-$0.26	Jul	$0.007
Soybeans:	$7.93	$0.01	-$0.45	Jul	-$0.003
SRW Wheat:	$4.79	-$0.01	-$0.22	Jul	$0.012
HRW Wheat:	$4.27	$0.00	-$0.26	Jul	-$0.003
HRS Wheat:	$4.81	-$0.01	-$0.25	Jul	$0.006

CORN:

The national average corn basis for Friday is at 26 cents under the July futures, 1 cent stronger than Thursday’s basis. July corn closed up 1 3/4 cents and for the week was unchanged. Corn had a good day and actually a good week, given that demand is lacking both domestically and on the export front. In Friday's DTN Weekly DDG price update, more offers appeared, but are still not back to pre-COVID-19 amounts. It's interesting to note, however, that prices are getting closer to that timeframe, with pressure also likely due to some feeders having changed rations when prices surged. The cash corn market hasn't been much help to DDG prices, but there was little change in the cash corn price versus one week ago. We are also seeing a loss in feed corn demand as meatpacking plants have yet to come back to 100% production, causing farmers to lighten up on feeding in some cases. Basis for shuttles delivered to the Pacific Northwest was unchanged at +100n and the Gulf basis was 3 cents stronger. River markets are still a mixed bag and feeling weak and barge freight is still cheap. Ethanol plants continue to look for corn but farmers have shown little interest right now.

SOYBEANS:

The national average soybean basis for Friday is at 45 cents under the July futures, unchanged from than Thursday’s basis. July soybeans closed up 1 1/2 cents Friday and for the week, July was down 12 cents. The week was marked with concern over renewed tensions between China and the U.S. and in spite of some fresh sales to China announces this week, uncertainty now reigns as to what will happen if the trade war resumes. NOPA released their April crush and according to Dow Jones, the National Oilseed Processors Association said 171.8 mb of soybeans were crushed in April, up 7% from a year ago and higher than trade expectations. Soybean oil prices had a good week and closed higher again on Friday after NOPA reported a stocks build, along with a higher close in crude oil to end the week. The track shuttle basis was unchanged for Mat at +77N with an 8-cent carry for June. Secondary shuttle freight has improved some, but bids and offers are still below tariff on a per car basis. The Gulf basis was weaker and barge lines report that there are plenty of empty barges currently parked and waiting for a home.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 22 cents under the Chicago July futures, 1 cent stronger than Thursday’s basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Friday is at 26 cents under the Kansas City July futures, 1 cent weaker than Thursday’s basis. The Kansas City July closed up 1/2 cent and for the week, posted a sharply lower loss of 27 3/4 cents, its lowest weekly close in two months. The market reacted unfavorably to the bearish USDA report earlier in the week showing an estimate of global wheat production hitting a new record high of 768.49 million metric tons. However, the market will keep watch on the declining French wheat conditions and the expected 2.9% loss in wheat production released by the German association of farm cooperatives. Germany is actually the second highest producer of EU wheat behind France.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 25 cents under the Minneapolis July futures, unchanged from Thursday’s basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis July futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were not quoted; 14% proteins were unchanged at +125N; 14.5% proteins were at +140 and 15% proteins were down 10 cents to up 5 cents at +150 to +165. Receipts were 32 cars, which includes zero trains.* (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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