DTN Daily Basis Comments

Tuesday Morning Basis Comments

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 1 cent weaker at 32 cents over the July futures contract, and the DTN National Corn Index was down 12 cents at $6.30. The national average basis for soybeans was 3 cents stronger at 32 cents under the July futures contract, while the DTN National Soybean Index was unchanged at $13.18. The national average basis for hard red winter (HRW) wheat was unchanged at 36 cents under the July futures contract, and the DTN National Hard Red Winter Wheat Index was up 10 cents at $7.86. The national average basis for hard red spring (HRS) wheat was 2 cents stronger at 34 cents under the July futures contract, while the DTN National Hard Red Spring Wheat Index was up 15 cents at $7.87.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $6.30 -$0.12 $0.32 Jul -$0.007
Soybeans: $13.18 $0.00 -$0.32 Jul $0.023
SRW Wheat: $5.83 $0.05 -$0.41 Jul $0.000
HRW Wheat: $7.86 $0.10 -$0.36 Jul -$0.001
HRS Wheat: $7.87 $0.15 -$0.34 Jul $0.020

CORN:

The national average corn basis for Monday was 32 cents over the July futures, 1 cent weaker than Friday's basis. PNW basis bids have disappeared until October at +125Z, while Hereford, Texas, has no bid for June and July is 5 cents weaker at +150N. CIF NOLA for June is 6 cents stronger at +71N. Track St. Louis for June is 10 cents weaker at +45N. Processor bids are unchanged with Cedar Rapids, Iowa, steady at +55N; Fort Dodge, Iowa, is steady at +80N; Council Bluffs, Iowa, is steady at +55N; Mitchell, South Dakota, is steady at +55N; Blair, Nebraska, is 10 cents weaker at +60N; Hastings, Nebraska is steady at +20N; Lincoln, Nebraska is steady at +35N; Garden City, Kansas, is steady at +115N; Columbus is steady at +45N for first week of June and Marshall, Minnesota, is steady at +35N. BN secondary freight for returns is not bid or offered, June is bid -$350 under against offers of -$250 and July is bid -$350 under against offers of -$200 under, and O,N,D is bid +$400 over against offers of +$600 over.

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SOYBEANS:

The national average soybean basis for Monday was 32 cents under the July futures, 3 cents stronger than Friday's basis. PNW basis for last-half September and October is steady at +165X. CIF NOLA basis for June is steady at +85N, while track St. Louis is steady for June at +52N. River basis north of St. Louis on the Mississippi River at Quincy, Illinois, is 5 cents stronger at +65N; while basis on the Illinois River at Havana, Illinois, is 5 cents stronger at +49N. There isn't anything happening in the barge freight market as demand is slow and barges remain banked. Water levels in the Lower Mississippi are falling, with the levels at Memphis expected to be below zero gauge by the weekend and tow sizes and drafts will likely be reduced. Processor bids are steady with some moving to the August futures. Council Bluffs, Iowa, is +85Q; Cedar Rapids, Iowa, is steady at +5N; Sioux City is steady at +15N; Volga, South Dakota, is 5 cents weaker at +65Q; Hastings, Nebraska, is steady at option the August; Lincoln, Nebraska, is steady at +70Q, Aberdeen, South Dakota, is steady at +15Q; Mitchell, South Dakota, is steady at -35Q; and Mankato, Minnesota, is steady at +25N.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday was 41 cents under the July futures, unchanged from Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Monday was 36 cents under the Kansas City July futures, unchanged from Friday's basis. The KC spot cash premiums were lower as mill demand has slowed. Ordinary protein was down 15 cents at +160, 11% protein through 11.2% was down 15 cents at +160; 11.4% through 12.4% was down 20 cents at +160; 12.6% through 13.4% protein was down 15 cents at +160, 13.6% was down 20 cents at +155 and 13.8% through 14% was steady at +155. Australian Bureau of Agricultural and Resource Economics and Sciences issued a new wheat production estimate, down 3 million metric tons to 26.2 mmt and below the 10-year average, as El Nino drought concerns are starting to surface.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday was 34 cents under the Minneapolis July futures, 2 cents stronger than Friday'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 at +130; 13.5% proteins were unchanged at 135N; 14% proteins were unchanged +145N to +200; 14.5% proteins were not quoted; 15% proteins were down 10 cents at +140* to +230 and 16% proteins were not quoted. Wheat receipts on the exchange floor were 58 cars, which included one train(s).* Bid (B), Ask(A), Nominal(N). MGEX Daily Grain Prices are Delivered Chicago/Beyond freight: Spot No. 1 Milling Northern/Dark Northern Spring Wheat.

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

Follow her on Twitter @MaryCKenn

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Mary Kennedy

Mary Kennedy
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