DTN Daily Basis Comments

Tuesday 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 was 1 cent stronger at 21 cents under the September futures contract while the DTN National Corn Index was up 3 cents at $2.89. The national average basis for soybeans was unchanged at 49 cents under the November futures contract while the DTN National Soybean Index was up 6 cents at $8.24. The national average basis for HRW wheat was 1 cent weaker at 21 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was down 1 cent at $3.93. The national average basis for HRS wheat was unchanged at 36 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was down 4 cents at $4.55.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $2.89 $0.03 -$0.21 Sep $0.003
Soybeans: $8.24 $0.06 -$0.49 Nov $0.000
SRW Wheat: $4.70 -$0.04 -$0.21 Sep $0.000
HRW Wheat: $3.93 -$0.01 -$0.21 Sep $0.005
HRS Wheat: $4.55 -$0.04 -$0.36 Sep -$0.001

CORN:

The national average corn basis for Monday is at 21 cents under the September futures, 1 cent stronger than Friday's basis. September corn was up 2 3/4 cents Monday, finding support from strength in the ethanol and oil futures, along with a strong finish for cash ethanol prices. The National Weather Service issued an alert Monday for a derecho, a widespread, long-lived, straight-line windstorm, rapidly progressing from eastern Iowa toward Lake Michigan with wind gusts up to 100 miles per hour (mph) possible. Social media is littered with pictures of the damage in Iowa so far, including destroyed grain bins and flattened corn, but it is unknown how much crop damage has been done. Total corn inspections for the week ended Aug. 6 were down 14% from the prior year, with three weeks left in the current crop year. The basis for shuttles delivered to the Pacific Northwest was steady and CIF Gulf basis was unchanged. Basis at ethanol plants was mixed with east-central Iowa up 2 cents stronger, central Illinois 1 cent stronger and southern Minnesota and southeast South Dakota 1 cent weaker. Farmer selling is light as the current cash price is unattractive to them.

SOYBEANS:

The national average soybean basis for Monday is at 49 cents under the November futures, unchanged from Friday's basis. November soybeans closed up 5 3/4 cents to start the week, supported by large sales announced Monday morning. USDA said private exporters sold 111,000 metric tons (mt) of soybeans for delivery to unknown destinations during the 2020/2021 marketing year and a total of 588,000 mt of soybeans for delivery to China during the 2020/2021. The rise in soybean meal futures added support to the market, with Sep meal up $2.20 after a dismal showing last week. Monday's weekly inspections showed soybean inspections for this crop year are down 5% versus one year ago. The track PNW shuttle basis was unchanged for September and processor basis was mixed and processors who need nearby beans to crush are showing stronger basis levels. Basis along the river is mixed and falling river levels could become an issue for traffic heading to the Gulf. Recent groundings in the Upper and Lower Mississippi River prompted dredging operations, which will likely continue in areas where shoaling becomes problematic.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is at 21 cents under the September futures, unchanged from Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Monday is at 21 cents under the Kansas City September futures, 1 cent stronger than Friday's basis. KC Sep closed down 1 1/2 cents to start the week as fresh news was scarce. Gulf basis was weaker and spot KC milling premiums were mixed. U.S. wheat will have a hard time competing beyond our regular customers, but any news of fresh business, including China, will give the market a boost.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 36 cents under the Minneapolis September futures, unchanged from Friday'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 not quoted; 14% proteins were up 10 cents to unchanged at +110; 14.5% proteins were at +85; 15% proteins were down 5 cents to unchanged +115* to +125N. Receipts were 61 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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