DTN Daily Basis Comments

Friday Morning Basis Update

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 13 cents under the July futures contract, while the DTN National Corn Index was up 13 cents at $7.20. The national average basis for soybeans was 1 cent stronger at 43 cents under the July futures contract while the DTN National Soybean Index was down 44 cents at $15.55. The national average basis for hard red winter (HRW) wheat was 3 cents stronger at 59 cents under the July futures contract and the DTN National Hard Red Winter Wheat Index was down 12 cents at $9.71. The national average basis for hard red spring (HRS) wheat was 6 cents stronger at 38 cents under the July futures contract and the DTN National Hard Red Spring Wheat Index was up 25 cents at $10.38.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $7.20 $0.13 -$0.13 Jul -$0.002
Soybeans: $15.55 -$0.44 -$0.43 Jul $0.007
SRW Wheat: $9.36 -$0.18 -$0.66 Jul $0.033
HRW Wheat: $9.71 -$0.12 -$0.59 Jul $0.028
HRS Wheat: $10.38 $0.25 -$0.38 Jul $0.057

CORN:

The national average corn basis for Thursday is 13 cents under the July futures, unchanged from Wednesday's basis. Track PNW shuttle basis 10 cents weaker for April at +140K, while CIF NOLA for April was steady at ++105K. Secondary shuttle freight was higher on the UP with first half April bid at $1,750 per car over tariff against no offers and last half April bid at $1,250 against offers of $2,500. BN secondary freight is cheaper with returns bid at $800 over against no offers, first half April bid at $600 over against no offers and last half April bid at $400 over against no offers. Ethanol plant basis has been firming with central Nebraska 2 cents stronger, central Iowa 5 to 10 cents stronger, southwestern Minnesota 3 cents stronger and southeast Nebraska 2 cents stronger.

SOYBEANS:

The national average soybean basis for Thursday is at 43 cents under the July futures, 1 cent stronger than Wednesday's basis. Track PNW shuttle basis was 5 cents weaker for June at +170N, while spot CIF NOLA basis was 5 cents stronger at +140K and April was steady at +110K. Illinois River basis was weaker as high water has developed from recent rains. The forecast at Peoria Lock and Dam shows that by next week, the levels will be at 19 feet, minor flood stage, and stay there all week. The Ohio River at Cairo is still high and in action stage at 33.97 feet and will stay there through next week as well. High water levels on the rivers cause safety protocols to be put in place, slowing traffic. Barge freight is still highest from the Davenport corridor up into the St. Paul corridor and demand in all areas remains mostly in the summer months.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Thursday is at 66 cents under the July futures, 3 cents stronger than Wednesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Thursday is at 59 cents under the Kansas City July futures, 3 cents weaker than Wednesday's basis. There were no trades reported on the KC milling spot market, while the 11% protein basis at the Texas Gulf and PNW 12% protein basis were both stronger this week in spite of dismal weekly export sales reported for last week. Domestic prices are pretty much flat as logistic problems continue to overshadow the market.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Thursday is at 38 cents under the Minneapolis July futures, 6 cents stronger than Wednesday's basis. The Minneapolis spot spring wheat cash premiums closed as follows, based on Minneapolis July futures: 12% proteins were not quoted, 13% proteins were not quoted, 13.5% proteins were not quoted, 14% proteins were unchanged at +150N to +180, 14.5% proteins were up 5 cents to up 10 cents at +135 to +150, 15% proteins were unchanged at +130N to +215, and 16 proteins were unchanged at +120N. Wheat receipts on the exchange floor were 31 cars, which included one train(s).* MGEX Daily Grain Prices are Delivered Chicago/Beyond: Spot No. 1 Milling Northern/Dark Northern Spring Wheat.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

Mary Kennedy

Mary Kennedy
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