DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 4 cents weaker at 11 cents over the July futures contract while the DTN National Corn Index was up 28 cents at $7.00. The national average basis for soybeans was down 2 cents at 21 cents under the July futures contract while the DTN National Soybean Index was up 16 cents at $15.28. The national average basis for HRW wheat was 2 cents stronger at 16 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was up 26 cents at $6.22. The national average basis for HRS wheat was 12 cents weaker at 43 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was up 32 cents at $7.28.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$7.00	$0.28	$0.11	Jul	-$0.036
Soybeans:	$15.28	$0.16	-$0.21	Jul	-$0.018
SRW Wheat:	$6.74	$0.25	-$0.20	Jul	-$0.049
HRW Wheat:	$6.22	$0.26	-$0.16	Jul	$0.022
HRS Wheat:	$7.28	$0.32	-$0.43	Jul	-$0.116

CORN:

The national average corn basis for Tuesday is at 11 cents over the July futures, 4 cents weaker than Friday's basis. July corn started the short week with a bang Tuesday, closing up 32 cents after a sluggish end to last week. All markets scored high closes and much of the support came from the expected hot and dry weather over the central U.S., Upper Midwest and Northern Plains. With triple-digit temps and little moisture expected in drought-stricken North Dakota, crop conditions there will likely worsen. Outside of the U.S., the Brazil corn crop is not doing any better because of drought. Expectations are that second-crop corn production there will drop even more than recent estimates. Corn inspections for the week ended May 27 were brisk and total inspections in 2020-21 are now up 78% from the previous year. Basis had a rough day and some of that can be attributed to the change in the PNW shuttle basis. Bids were pulled for nearby and don't reappear until last half November/December, signaling it will be a quiet summer for corn exports. Cheap secondary shuttle freight is another indicator and June through August BNSF freight is bid at $300 per car under tariff and offered at $200 under.

SOYBEANS

The national average soybean basis for Tuesday is at 21 cents under the July futures, 2 cents weaker than Friday's basis. July soybeans closed up 18 cents Tuesday, rallying along with corn, wheat and energy markets. July soybean oil closed up 1.6 cents, adding to the higher soybean market as well. USDA released the Fats and Oils monthly report, which showed soybeans crushed for crude oil at 5.10 million tons (170 mb) in April 2021, compared with 5.65 million tons (188 mb) in March 2021, with April's total below trade estimates. Weekly inspections showed for the week ended May 27, total inspections in 2020-21 are up 59% from the previous year. Processor basis continues to drop and basis elsewhere has been weaker as well. Track St. Louis was 5 cents weaker and river basis is quiet nearby. Barge freight is feeling weak as shippers don't need any nearby barges. River conditions have been good and empties are finding their way back upriver without issue.

SOFT RED WINTER WHEAT

The national average SRW wheat basis for Tuesday is at 20 cents under the July futures, 5 cents weaker than Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Tuesday is at 16 cents under the Kansas City July futures, 2 cents stronger than Friday's basis. KC July was up 24 1/4 cents, pulled higher by spring wheat which closed up 44 cents. As the drought continues in North Dakota, the forecast for hot and dry weather is adding more concern for the wheat crop there. HRW harvest has started in Texas and Oklahoma, but wet conditions there will delay that harvest and possibly cause quality problems as well. May 31 was the end of the year for winter wheats and poor weekly inspections reported through May 27 were nothing to celebrate. There has been plenty of export activity, but not including U.S. wheat. There were no spot cars for sale, but expect the mills to pay up for higher protein old-crop cars that show up as expectations are the new crop may be lower protein.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is at 43 cents under the Minneapolis July futures, 12 cents weaker than Friday'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 at +85*, 13.5% proteins were not quoted, 14% proteins were up 5 cents to down 25 cents at +120; 14.5% proteins were down 10 cents at +95 and 15% proteins were unchanged to down 15 cents at +100* to +150. Receipts were 136 cars, which included 4 train(s).* (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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