DTN Daily Basis Comments

Thursday Morning Basis Update

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 2 cents weaker at 24 cents under the September futures contract while the DTN National Corn Index was up 8 cents at $3.27. The national average basis for soybeans was 1 cent weaker at 44 cents under the August futures contract while the DTN National Soybean Index was up 16 cents at $8.36. The national average basis for HRW wheat was 9 cents weaker at 31 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was down 5 cents at $4.12. The national average basis for HRS wheat was 2 cents weaker at 31 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was down 5 cents at $4.86.

DTN CashChange FromNationalContractChange from
CommodityIndexPrev DayAvg. BasisMonthPrev Day
Corn:$3.27$0.08-$0.24Sep-$0.012
Soybeans:$8.47$0.11-$0.44Aug-$0.015
SRW Wheat:$4.81$0.08-$0.18Sep$0.007
HRW Wheat:$4.12-$0.05-$0.31Sep-$0.082
HRS Wheat:$4.86-$0.05-$0.31Sep-$0.025

CORN:

The national average corn basis for Wednesday is at 24 cents under the September futures, 2 cents weaker than Tuesday's basis. The September corn market closed up 9 cents, with support still coming from the bullish USDA Acreage report, along with concerns that the Corn Belt is mostly dry with temperatures heating up in the Western Corn Belt. The weekly Energy Information Administration (EIA) noted that, for the week ended June 26, ethanol plant production was up 7,000 barrels per day (bpd) to 900,000 bpd versus the week prior. While that is still lagging from pre-COVID-19 levels, it's a small victory for corn that demand is still trying to recover. However, corn still needs fresh export demand to stay strong, something that has been eluding corn recently. Basis for shuttles delivered to the Pacific Northwest was 5 cents weaker for July and CIF New Orleans, Louisiana (NOLA) basis was 2 cents weaker. Secondary shuttle freight prices improved, with first-half July offered at -$100 per car below tariff and no offer and last half July bid -$100 per car below tariff and offered at -$75. Ethanol plant basis was weaker with the 20-cent strength in the cash price the past two days seeing cash corn come to market.

SOYBEANS:

The national average soybean basis for Wednesday is at 44 cents under the August futures, 1 cent weaker than Tuesday's basis. The August soybean futures closed up 12 3/4 cents, still celebrating the bullish USDA reports on Tuesday. Drier, hotter weather is also supporting the market with the only rain forecast in this heat expected in parts of North Dakota and Missouri. Underlying pressure will come from the dismal relationship between the U.S. and China right now, dampening hopes that China will hold up its end of the trade agreement. The track PNW basis was steady in July and August, but first-half September was 3 cents weaker, and the last half was 4 cents weaker. CIF NOLA basis was weaker, and river basis was flat to lower. Barge freight is cheap, and there are plenty of empty barges around to supply anyone who needs them.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 18 cents under the August futures, 1 cent stronger than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 31 cents under the Kansas City September futures, 9 cents weaker than Tuesday's basis. The KC September was up 3 cents on follow-through buying from Tuesday's high. As protein reports are getting better out of western Kansas, the spot KC market is seeing the effect of that. The premium for 12% protein was 3 cents stronger, 12.2% was 7 cents weaker, 12.4% through 12.8% was 2 cents weaker, 13% was 5 cents weaker and 13.2% through 14% was 2 cents weaker.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 31 cents under the Minneapolis September futures, 2 cents weaker than Tuesday's basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis September futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were unchanged at +115N; 14% proteins were unchanged at +110; 14.5% proteins were up 20 cents to up 10 cents at +110*; 15% proteins were down 35 cents to down 10 cents at +120* to +150. Receipts were 60 cars, which included two 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

Mary Kennedy

Mary Kennedy
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