DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 75 cents over the September futures contract while the DTN National Corn Index was down 1 cent at $6.31. The national average basis for soybeans was 5 cents weaker at 44 cents over the November futures contract while the DTN National Soybean Index was down 24 cents at $14.17. The national average basis for HRW wheat was 4 cents stronger at 18 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was up 4 cents at $6.34. The national average basis for HRS wheat was 7 cents stronger at 22 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was up 13 cents at $9.01.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$6.31	-$0.01	$0.75	Sep	-$0.007
Soybeans:	$14.17	-$0.24	$0.44	Nov	-$0.048
SRW Wheat:	$6.59	$0.05	-$0.38	Sep	-$0.007
HRW Wheat:	$6.34	$0.04	-$0.18	Sep	$0.031
HRS Wheat:	$9.01	$0.13	-$0.22	Sep	$0.065

CORN:

The national average corn basis for Monday is at 75 cents over the September futures unchanged from Friday's basis. The September corn market ended the day unchanged, while December closed up 1/4 cents. A dry seven-day forecast with triple-digit temperatures expected in the northwestern U.S. Plains was supportive to the market. Weekly corn inspections for the week ended July 15 showed total inspections in 2020-21 are now up 65% from the previous year, while the USDA is estimating corn exports for the current crop year up 60% from the prior year. With about six weeks left in this crop year, and a lack of recent fresh business, we may see the U.S. adjust their current estimate. Meanwhile, the market awaits the corn crop ratings out Monday afternoon for the week ended July 18, and while there may be improvement in some of the Midwest states that got rain, but conditions in the drought areas may show a decline. The track Pacific Northwest shuttle basis for last half November was 12 cents stronger at +130Z, while nearby CIF NOLA basis was weaker and track St. Louis was 6 cents weaker. Domestic basis was mostly unchanged with bids in the western Corn Belt feeling strongest right now.

SOYBEAN:

The national average soybean basis for Monday is at 44 cents over the November futures, 5 cents weaker than Friday's basis. August soybeans closed down 26 3/4 cents and December closed down 19 cents following the sharply lower soybean oil, down 3.4 cents. Pressure came from the weekend announcement that Organization of the Petroleum Exporting Countries in consortium with Russia-led partners agreed to gradually boost crude output through the end of 2022, which in turn caused a steep loss of $5.39 in crude oil futures. The trickledown effect of that hit the soybean oil market, and in turn, soybeans and meal. Weekly soybean inspections for the week ended July 15 showed total inspections in 2020-21 up 51% from the previous year, while the USDA is estimating soybean exports up 36% from the prior year. Soybean basis continues to see weakness as more buyers get out of August and move into November, but processor basis was weaker Monday. Central Iowa was 4 cents weaker, southwest Iowa and southern Minnesota was 5 cents weaker and northeastern Kansas and northwest Missouri was 10 cents weaker.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is at 38 cents under the September futures, unchanged from Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Monday is at 18 cents under the Kansas City September futures, 4 cents stronger than Friday's basis. KC September closed up 3/4 cent Monday, while December closed up 1 cent. While U.S. wheat is priced out of the export picture, the watch is on in France and Germany where rains are slowing harvest and possibly downgrading quality. Here in the U.S., mills still want higher protein and will pay for it. Ord's on the KC spot were 2 cents weaker Monday, while the premium for 12% protein was 10 cents stronger.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 22 cents under the Minneapolis September futures, 7 cents stronger than 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 down 20 cents at +120*, 14% proteins were up 5 cents to unchanged at +130* to +150N; 14.5% proteins were not quoted and 15% proteins were unchanged to up 60 cents at +110N to +170. Receipts were 71 cars, which included two 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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