DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 75 cents over the September futures contract while the DTN National Corn Index was down 9 cents at $6.31. The national average basis for soybeans was 5 cents weaker at 49 cents over the November futures contract while the DTN National Soybean Index was up 7 cents at $14.41. The national average basis for HRW wheat was 2 cents weaker at 22 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was up 9 cents at $6.30. The national average basis for HRS wheat was 6 cents weaker at 23 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was up 17 cents at $8.88.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$6.31	-$0.09	$0.75	Sep	-$0.004
Soybeans:	$14.41	$0.07	$0.49	Nov	-$0.048
SRW Wheat:	$6.55	$0.18	-$0.38	Sep	-$0.026
HRW Wheat:	$6.30	$0.09	-$0.22	Sep	-$0.020
HRS Wheat:	$8.88	$0.17	-$0.29	Sep	-$0.059

CORN:

The national average corn basis for Friday is at 75 cents over the September futures 1 cent stronger than Thursday's basis. The September corn market started Friday higher but closed down 8 1/4 cents. For the week, September corn was up 26 1/2 cents and December corn was up 35 cents. The weather outlook for the corn crop is a mixed bag with flash flood watches and warnings in southeastern Kansas and southwestern Missouri. On the flip side, extreme heat returned to the northwestern Plains over the weekend into the coming week, adding further stress to crops in drought. In question now is if we will have another tight supply situation and how much corn China may take from the U.S., partially due to the second corn crop in Brazil failing. Track PNW basis ranges from +115Z to +118Z for November, with nothing posted before then. Track St. Louis basis was 2 cents weaker, with river basis mostly steady to lower. Ethanol plant basis was mixed with central Iowa 10 cents stronger, east-central Nebraska 3 cents weaker, northeastern Kansas 5 cents weaker and southeast South Dakota 12 cents weaker.

SOYBEAN:

The national average soybean basis for Friday is at 49 cents over the November futures, 5 cents weaker than Thursday's basis. August soybeans closed up 7 1/4 cents Friday, while November was up 11 3/4 cents. For the week, August soybeans closed up 75 1/2 cents and November soybeans were up 62 1/2 cents. Beans have been finding support from soybean oil prices and Friday August bean oil closed up 0.86 cents, as the canola market hit new contract highs and palm oil market was higher. Soybeans are also reacting to the weather conditions mentioned in corn comments and concern if yields may be cut in areas where rain is scarce amid temperatures in the 90s and higher. Soybean basis has been fluctuating the past week as plants started to move basis from August to November. Track PNW basis is firm for September forward and CIF NOLA basis was steady. Barge freight is still flat other than some interest in St. Louis and also from the fertilizer sector needing barges to move north.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 35 cents under the September futures, 3 cents weaker than Thursday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Friday is at 22 cents under the Kansas City September futures, 2 cents weaker than Thursday's basis. September KC wheat was up 12 1/2 cents Friday and for the week closed up 57 1/2 cents thanks in part to Minneapolis wheat, which for the week was up $1.03 a bushel as drought continues to ravage the spring wheat crop. The weekly U.S. Wheat Associates harvest update shows that protein has come up a little and so far, stands at 11.4%, mostly from the southern states. As harvest moves into the drought areas, protein will increase. Test weight average is 61.4, but that may change from the drought wheat. The Gulf basis for 12% protein has strengthened, while mills are still looking to buy higher proteins.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 29 cents under the Minneapolis September futures, 6 cents weaker than Thursday'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 +140N, 14% proteins were down 10 cents to up 15 cents at +125 to +150; 14.5% proteins were unchanged at +130N to +140N and 15% proteins were unchanged at +110*. Receipts were 38 cars, which included one 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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