DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 25 cents under the July futures contract while the DTN National Corn Index was up 2 cents at $2.96. The national average basis for soybeans was unchanged at 46 cents under the July futures contract while the DTN National Soybean Index was up 1 cent at $8.03. The national average basis for HRW wheat was unchanged at 25 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was up 4 cents 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 5 cents at $4.88.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$2.96	$0.02	-$0.25	Jul	$0.001
Soybeans:	$8.03	$0.01	-$0.46	Jul	-$0.002
SRW Wheat:	$4.84	-$0.02	-$0.21	Jul	$0.006
HRW Wheat:	$4.27	$0.04	-$0.25	Jul	-$0.003
HRS Wheat:	$4.88	-$0.05	-$0.25	Jul	-$0.002

CORN:

The national average corn basis for Wednesday is at 25 cents under the July futures, unchanged from Tuesday’s basis. July corn closed up 1 1/2 cents Wednesday in spite of the weakness in the wheat and ethanol markets. Monday's Crop Progress report was delayed until Tuesday and showed corn is 88% planted and 64% emerged and above the five-year average overall. North Dakota is the trouble spot in the U.S. and with the final insurance plant date passing on May 25, expectations are that farmers will return corn seed and prevented planting acres could reach 1.5 million in the state. DTN weather forecast is for periods of moderate to heavy showers across the Plains and Midwest down into the Southeast through Thursday before a cold front moves through from northwest to southeast to shut down the precipitation, with temperatures rising well above normal for most areas next week. Basis for shuttles delivered to the Pacific Northwest was steady, while basis along the Illinois River has perked up. As we get closer to the July 1 closure there, barges have a schedule as to when they need to be loaded by and on their way. The recent flooding did hamper that process, but the river is now open. Ethanol plant basis is still firm as plants needing spot corn will post stronger basis.

SOYBEANS:

The national average soybean basis for Wednesday is at 46 cents under the July futures, unchanged from Tuesday’s basis. July soybeans closed up 1 1/2 cents at midweek as the market continues to grapple with the current tensions between China and the U.S. and what impact it may have on exports. Late Wednesday afternoon, USDA issued a correction to Wednesday morning announcement of a previous sale of 138,000 metric tons (mt) of soybean meal to unknown destinations disclosed as Philippines, saying it was actually a new sale to Philippines. Tuesday's 216,000 mt meal sale to unknown was a previous sale that was supposed to be disclosed as Philippines. The news didn't do much for soybean meal futures Wednesday, but soybean oil closed higher. The track PNW shuttle basis remains steady, but like corn, soybean basis on the Illinois River is firm as shippers need to get barges loaded and on their way ahead of the scheduled closure for lock repair and maintenance that will begin July 1.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 21 cents under the Chicago July futures, unchanged from Tuesday’s basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 25 cents under the Kansas City July futures, unchanged from Tuesday’s basis.

The KC July closed up 4 1/2 cents and the KC spot market was higher as more cars showed up for sale and mill demand remains strong. USDA's crop progress report showed HRW wheat conditions at 54% good to excellent versus the average of 51%. Kansas remained unchanged at 40% good to excellent as drought continues to be a concern in some areas of the state, along with disease and other weather-related issues.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 25 cents under the Minneapolis July futures, unchanged from Tuesday’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 up 25 cents to unchanged at +140; 14.5% proteins were not quoted and 15% proteins were down 5 cents to unchanged at +150A to +160. Receipts were 38 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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