DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 25 cents under the July futures contract while the DTN National Corn Index was up 1 cent at $2.93. The national average basis for soybeans was 1 cent weaker at 46 cents under the July futures contract while the DTN National Soybean Index was down 2 cents at $7.87. The national average basis for HRW wheat was 2 cents weaker at 28 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was down 12 cents at $4.17. The national average basis for HRS wheat was 7 cents weaker at 32 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was down 11 cents at $4.81.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$2.93	$0.01	-$0.25	Jul	$0.008
Soybeans:	$7.87	-$0.02	-$0.46	Jul	-$0.005
SRW Wheat:	$4.86	-$0.07	-$0.23	Jul	-$0.003
HRW Wheat:	$4.17	-$0.12	-$0.28	Jul	-$0.020
HRS Wheat:	$4.81	-$0.11	-$0.32	Jul	-$0.064

CORN:

The national average corn basis for Friday is at 25 cents under the July futures, 1 cent stronger than Thursday’s basis. Corn just couldn't shake the doldrums this week as the market continues to struggle with lack of export demand. While there is a slight uptick in demand for corn at ethanol plants, it certainly isn't back to what it was pre-COVID-19. Feed demand via DDG and other corn byproducts is also lacking, adding more pressure to the corn market. DDG prices continue to fall even as more offers appear, and prices for this week are below what they were before the pandemic. The basis for shuttles delivered to the Pacific Northwest remains firm for June, and rail delivered to St. Louis was 3 cents stronger. Ethanol plant basis continues to move higher with central Iowa 1 to 3 cents stronger, northeastern Indiana and east-central Nebraska 2 cents stronger, southwest Iowa 1 cent stronger, and south-central Nebraska and northeastern Kansas 5 cents stronger. Farmers are still not willing sellers for the most part as many remain in the fields.

SOYBEANS:

The national average soybean basis for Friday is at 46 cents under the July futures, 1 cent weaker than Thursday’s basis. July soybeans were down 1 3/4 cents Friday and for the week, lost 5 1/4 cents. The losses in soybean oil led by the lower energy market added pressure to the soybean market. Soybean meal was able to recover Friday, closing up $1.60, but that didn't give any support to the overall market. The market will keep watch on the recent uptick in coronavirus cases in Brazil and if that will cause any disruptions to exports. The shuttle basis track PNW was unchanged, while the rail delivered St. Louis basis was 2 cents stronger. River levels in the St. Louis harbor are back below 26 feet for now, but the river is expected to rise again with projections of a new crest at 29 feet by the end of the week. Once the river rises above 26 feet, safety protocols will be back in place and barges will be subject to daylight-only passage through the harbor.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 23 cents under the Chicago July futures, unchanged from Thursday’s basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Friday is at 28 cents under the Kansas City July futures, 2 cents weaker than Thursday’s basis.The KC July was down 10 cents Friday and for the week was down 7 3/4 cents. Mills paid up again for lower proteins on the spot market with 11% up 10 cents and 11.2% through 11.4% up 2 cents. The market will keep an eye on the weather outside of the U.S. as drought continues in northeastern Europe and the seven-day forecast is only calling for light amounts of rain in France and Germany. The Virtual HRW Wheat Crop Tour estimated U.S. HRW at 284.4 million bushels versus USDA's estimate of 305.5 mb. The crop is still not out of the woods yet, and weekend storms in parts of the Southern Plains hammered some parts of Kansas and Oklahoma with heavy rain and some hail.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 32 cents under the Minneapolis July futures, 7 cents weaker than 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 to up 25 cents at +115N to +140; 14.5% proteins were down 5 cents at +110 and 15% proteins were unchanged to down 4 cents at +155N to +160. Receipts were 11 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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