DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 27 cents under the July futures contract while the DTN National Corn Index was down 3 cents at $3.97. The national average basis for soybeans was unchanged at 82 cents under the July futures contract while the DTN National Soybean Index was up 1 cent at $7.97. The national average basis for HRW wheat was unchanged 2 cents weaker at 20 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was up 12 cents at $4.67. The national average basis for HRS wheat was unchanged at 45 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was up 12 cents at $5.19.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.97	-$0.03	-$0.27	Jul	-$0.003
Soybeans:	$7.97	$0.01	-$0.82	Jul	-$0.003
SRW Wheat:	$4.99	$0.17	-$0.21	Jul	-$0.001
HRW Wheat:	$4.67	$0.12	-$0.20	Jul	-$0.015
HRS Wheat:	$5.19	$0.12	-$0.45	Jul	$0.005

CORN:

The DTN National Corn Index for Monday indicated a national average basis of 27 cents under the Chicago July futures contract, unchanged from Friday's basis. The July corn futures closed 2 3/4 cents lower mainly due to lack of market participation. There hasn't been much opportunity the past week to push planting, as moderate-to-heavy precipitation amounts are falling over eastern Nebraska and western Iowa, with more to come this week especially for the southern and Eastern Corn Belt. These areas are seeing flooding issues continuing to cause problems for farmers, not just in their fields, but many have seen their homes and buildings flood as well. Weekly inspections were not great for the week ending May 30, coming in below the 45.2 mb needed each week to reach USDA's export estimate of 2.300 bb. Total inspections for 2018-19 are down 1% from the previous year. Basis at the Gulf is 3 cents weaker as demand slows and getting loaded barges there remains difficult. The basis for shuttles delivered to the PNW in June is steady and interior basis remains firm.

SOYBEANS:

The DTN National Soybean Index for Monday indicated a national average basis of 82 cents under the Chicago July futures contract, unchanged from Friday's basis. Soybeans were slightly higher as planting concerns remain, as more rain will add to already soaked fields waiting to be planted in the Midwest. Weekly inspections for the week ending May 30 were below the 33.6 mb needed weekly to reach USDA's export estimate of 1.775 bb. Total inspections for 2018-19 are down 27% from the previous year, making the report bearish once again for soybeans. The trade war between China and the U.S. remains unresolved and if that doesn't change, it will be devastating again for soybean exports in the coming year. Processing plant basis was 5 cents weaker in southern Minnesota and 3 cents weaker in northwest Iowa. Not much has been moving as farmers are trying to plant, but more rain has caused flooding to once again close roads and slow rail movement in parts of the Midwest.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter (SRW) Wheat Index for Monday indicated a national average basis of 21 cents under the Chicago July futures, 1 cent weaker than Friday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter (HRW) Wheat Index for Monday indicated a national average basis of 20 cents under the Kansas City July futures contract, 2 cents weaker than Friday's basis. The cash price was sharply higher as a tropical disturbance from Mexico is expected to bring heavy rain amounts into the southern U.S. Plains this week, adding to the already soaked HRW and SRW wheat growing areas. Concern is growing that this new crop is going to suffer from disease and low protein and possibly sprout damage as well. We won't see the effect of all the rain on the new crop until it is harvested and grade at the elevator. Mills are stepping up their old crop purchases when cars show up on the KC spot market and while this time of year we normally see basis weaken, that isn't the case so far this harvest.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring (HRS) Wheat Index for Monday indicated a national average basis of 45 cents under the Minneapolis July futures contract, unchanged from Friday's basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis July futures contract for #1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were at +115; 14% proteins were unchanged at +90N; 14.5% proteins were unchanged at +85N to +105N and 15% proteins were unchanged at +100N. Receipts were two cars, which included zero trains.* (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 Mary Kennedy on Twitter @MaryCKenn

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