DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent weaker at 79 cents over the September futures contract while the DTN National Corn Index was up 6 cents at $6.30. The national average basis for soybeans was 8 cents stronger at 53 cents over the November futures contract while the DTN National Soybean Index was up 9 cents at $14.05. The national average basis for HRW wheat was 1 cent stronger at 19 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was down 3 cents at $5.92. The national average basis for HRS wheat was 5 cents stronger at 26 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was up 10 cents at $8.35.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$6.30	$0.06	$0.79	Sep	$0.002
Soybeans:	$14.05	$0.09	$0.53	Nov	$0.076
SRW Wheat:	$6.01	-$0.06	-$0.33	Sep	$0.008
HRW Wheat:	$5.92	-$0.03	-$0.19	Sep	$0.003
HRS Wheat:	$8.35	$0.10	-$0.26	Sep	$0.051

CORN:

The national average corn basis for Tuesday is at 78 cents over the September futures 1 cent weaker than Monday's basis. The September corn market closed up 6 cents and December closed up 7 3/4 cents as weather is a mixed bag for the crop with too much rain and not enough rain the current feature. Monday's corn crop rating improved slightly from the prior week at 65% good to excellent with better ratings in South Dakota and Wisconsin and lower ratings reported in Nebraska and Illinois. Monday's Crop Progress report may not have shown all the damage seen from weekend storms. Tuesday's weather map showed scattered showers falling in the Eastern Corn Belt, with showers developing in South Dakota and into Minnesota, northern Iowa and Wisconsin on Wednesday after a hot start to the week. Even still, there are some farmers in the Upper Midwest concerned their drought-stricken crops may not recover, even with more rain. Track Pacific Northwest shuttle basis saw some life for December, 2 cents stronger at +120Z, as no bids are still not posted for any month prior to that. River basis is mixed as not much is going on at the Gulf right now, at least not in the way of new business. Ethanol plant continues to fluctuate with plants needing nearby corn paying more than plants that likely have pre-committed old-crop corn.

SOYBEANS:

The national average soybean basis for Tuesday is at 53 cents over the November futures, 8 cents stronger than Monday's basis. August soybeans closed up 10 1/2 cents, while November closed up 1 1/2 cents. Support nearby came from all 2021 soybean oil months closing above 1 cent, following another strong day for canola. Monday's Crop Progress report showed the soybean rating at 59% good to excellent, unchanged from the prior week and the third lowest in the past 12 years. Crops in the Dakotas and Minnesota are showing stress from drought and while rains will move through those areas, another heat wave is expected. Gulf soybean basis for July and August was 4 cents stronger, while river basis was mostly steady. Barge freight for old and new crop remains flat with no bids or offers right now. Processor basis continues to be the driver of the basis market and basis in central Illinois was 25 cents stronger, while southern Minnesota was 15 cents stronger, while some plants will still pay up for spot purchases.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Tuesday is at 33 cents under the September futures, 1 cent stronger than Monday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Tuesday is at 19 cents under the Kansas City September futures, 1 cent stronger than Monday's basis. The KC July closed down 3 1/2 cents while KC December was down 3 1/4 cents after trying to keep up with Minneapolis wheat, but fading to end the day. Country basis remains steady as feed demand is still strong and mills continue to discount the lower proteins on the spot market. Winter wheat harvest continues, but there will be some poor test weight and yields as they head north. Read more about wheat conditions here: https://www.dtnpf.com/…

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is at 26 cents under the Minneapolis September futures, 5 cents stronger than Monday'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 unchanged at +130N, 13.5% proteins were unchanged at +115N, 14% proteins were down 20 cents to down 15 cents at +130* to +140*; 14.5% proteins were up 5 cents to up 10 cents at +130 to +135* and 15% proteins were unchanged at +140* to +170. Receipts were 178 cars, which included six 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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