DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 74 cents over the September futures contract while the DTN National Corn Index was up 16 unchanged at $6.46. The national average basis for soybeans was 3 cents weaker at 39 cents over the November futures contract while the DTN National Soybean Index was down 2 cents at $14.29. The national average basis for HRW wheat was 1 cent weaker at 19 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was up 7 cents at $6.50. The national average basis for HRS wheat was 3 cents weaker at 23 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was down 5 cents at $8.96.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$6.46	$0.00	$0.74	Sep	-$0.003
Soybeans:	$14.29	-$0.02	$0.39	Nov	-$0.032
SRW Wheat:	$6.69	$0.09	-$0.41	Sep	-$0.014
HRW Wheat:	$6.50	$0.07	-$0.19	Sep	-$0.013
HRS Wheat:	$8.75	-$0.21	-$0.23	Sep	-$0.028

CORN:

The national average corn basis for Wednesday is at 74 cents over the September futures unchanged from Tuesday's basis. September corn futures closed unchanged Wednesday, while December closed up 2 3/4 cents. Weather in the Western Corn Belt is expected to stay hot and dry, with much of the same in most of the Eastern Corn Belt. Corn and ethanol are seeing pressure from the lack of a new mandate announcement from the Environmental Protection Agency for 2021 and 2022 that had been expected this month. Late Tuesday, it was reported the White House will further delay the release of Renewable Fuel Standard (RFS) proposals due to political concerns. Wednesday's EIA report showing a slowdown in plant production means corn demand for now has softened. Some plants continue with summer maintenance, while overall plant margins have recovered from last week's losses. The track shuttle PNW basis is steady at +125Z to +130Z for last half November, while track St. Louis basis was 5 cents stronger. Ethanol plant basis was mixed with some plants coming out of maintenance posting stronger bids.

SOYBEAN:

The national average soybean basis for Wednesday is at 39 cents over the November futures, 3 cents weaker than Tuesday's basis. August soybean futures closed down 1 1/4 cents at midweek while November was up 1 1/4 cents as pressure came from the 1.37 loss in September soybean oil. Soybean oil was under pressure from the losses in canola on the day and the reports of the RFS 2021 and 2022 biofuel mandates being delayed. Palm oil has been following soybean oil lower, but is also under pressure from the spread of the COVID-19 Delta variant likely causing a slowdown in demand. While the U.S. soybean crop will be subject to the heat and dry conditions in the Upper Midwest, the market seems to be hanging on to the spotty rains expected. Processor basis was mixed with the same story from Tuesday in that spot basis levels at some plants are strong, but then fall back for August or the spot premium disappears if a plant gets covered. That could change of course as plants need beans to crush, but right now that seems to be the pattern. There was no change to the track PNW shuttle basis of +160X to +163X for September forward but track St. Louis was 5 cents weaker.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 41 cents under the September futures, 1 cent weaker than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 19 cents under the Kansas City September futures, 1 cent weaker than Tuesday's basis. KC September futures closed up 8 1/2 cents and producers have been taking advantage of the higher prices by selling new-crop cash wheat. Higher proteins are still seeing the most love and the low protein values have been slipping. There is talk Russia wheat yields are not great and French wheat is slow to get harvested given the recent rains and there are still quality concerns in the market. Recent reports out of the PNW white winter wheat harvest say yields are down 30% from expectations and proteins are running higher than what is preferred by end users.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 23 cents under the Minneapolis September futures, 3 cents weaker than Tuesday'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 +120N, 14% proteins were unchanged at +115N to +170N; 14.5% proteins were at +105* to +135 and 15% proteins were up 45 cents to up 5 cents at +155 to +175. Receipts were 76 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

(c) Copyright 2021 DTN, LLC. All rights reserved.