DTN Daily Basis Comments

DAILY BASIS:

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.25	-$0.05	-$0.42	Jul	-$0.003
Soybeans:	$8.77	-$0.08	-$0.79	Jul	$0.007
SRW Wheat:	$3.70	$0.01	-$0.56	Jul	$0.014
HRW Wheat:	$3.27	$0.02	-$0.98	Jul	$0.010
HRS Wheat:	$5.03	$0.07	-$0.48	Jul	$0.011

CORN:

The DTN National Corn Index for Wednesday indicated a national average basis of 42 cents under the Chicago July futures contract, unchanged from Tuesday's basis. Corn was lower, under pressure from President Donald Trump reportedly being close to signing an executive order withdrawing the U.S. from NAFTA. This would be bad for U.S. corn exports in to Mexico, the largest buyer of our corn. The forecast for more rain in the Corn Belt was outweighed by a stronger U.S. dollar, which also added pressure to the corn market. It was pretty quiet for basis midweek, but river and Gulf basis remains firm. There are now high water restrictions in the lower portion of Upper Mississippi River in addition to the ones already placed on the Illinois River. Transit delays are expected and smaller tow sizes are in effect for now. The Ohio River at Cairo is at minor flood stage this morning.

SOYBEANS:

The DTN National Soybean Index for Wednesday indicated a national average basis of 79 cents under the Chicago July futures contract, 1 cent stronger than Tuesday's basis. Soybeans, like corn, came under pressure from the reports of President Trump indicating he will sign an executive order pulling the U.S. out of NAFTA, which could affect U.S. exports of soybean products. Also, the current wet pattern affecting corn planting put pressure on soybeans as well. The reasoning being that if farmers can't get all their corn planted, they will plant more soybeans, adding to the already large pile expected out of South America. Buyers are looking for old crop soybeans, but farmers have no interest in selling right now. Processor basis was firm with central Iowa 6 cents stronger, southwest Iowa 5 cents stronger and southern Minnesota 3 cents stronger. Gulf basis is still steady at +35K.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Wednesday indicated a national average basis of 56 cents under the Chicago July futures, 2 cents stronger than Tuesday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter Wheat Index for Wednesday indicated a national average basis of 98 cents under the Kansas City July futures contract, 1 cent stronger than Tuesday's basis. Mills were in a buying mood again as the uncertainty of the new crop protein due to cooler weather has sent them to the spot market. Spot basis for ords was 6 cents stronger, 5 cents stronger for 11.6% protein and 4 cents stronger for 11.8%; basis the KWK. Temps were is the mid 20's today in North Dakota and on top of the recent cold and snow, their winter wheat crop is likely a mess. There were frost and freeze warnings overnight in portions of Missouri, Nebraska and Kansas. Damage to winter wheat depends on what growth state the plant is in and how long the temps remain below freezing.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Wednesday indicated a national average basis of 38 cents under the Minneapolis July futures contract, 2 cents stronger than Tuesday's basis. The Minneapolis spot HRS wheat cash market closed as follows, basis the Minneapolis July futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were not quoted; 14% proteins were at +122; 14.5% proteins were at +122B and 15% proteins were at +170 to +190. Receipts were 50 cars, which included zero trains.* More snow and cold weather in North Dakota and NW Minnesota will further delay planting and is supportive for the flat price.

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

Follow Mary Kennedy on Twitter @MaryCKenn

(BAS)

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