DTN Daily Basis Comments

DAILY BASIS:

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.30	-$0.04	-$0.39	Jul	$0.004
Soybeans:	$8.95	-$0.04	-$0.71	Jul	$0.001
SRW Wheat:	$3.92	$0.01	-$0.42	Jul	-$0.008
HRW Wheat:	$3.56	$0.02	-$0.85	Jul	$0.002
HRS Wheat:	$5.07	$0.03	-$0.41	Jul	-$0.001

CORN:

The DTN National Corn Index for Thursday indicated a national average basis of 39 cents under the Chicago July futures contract, 1 cent stronger than Wednesday's basis. Corn was under pressure from Brazil's CONAB forecast that farmers will produce a total of 92.8 million metric tons of corn in the two crops it will grow in the 2016-2017 season up from 91.5 million metric tons forecasted in April. Thursday's weekly export report was neutral to bearish for the market, something we haven't see for quite some time. While sales were above the amount needed to stay on track to reach USDA projections, shipments were well below the amount needed this week. Basis was mixed along the river, but some Illinois terminals have posted stronger basis as they are able to load out now that the Illinois River is receding. Delays still exist and high water operating conditions are still in place. The Force Majeure declaration invoked by CME on May 4, 2017 on the Illinois River because of flooding closing some terminals, was removed May 11.

SOYBEANS:

The DTN National Soybean Index for Thursday indicated a national average basis of 71 cents under the Chicago July futures contract, unchanged from Wednesday's basis. Soybeans came under pressure in apart from CONAB raising their estimate for the Brazil soybean crop, which is nearly 100% harvested, to 113 million metric tons for the 2016-2017 up from their April estimate of 110.2 million metric tons. Commercial selling added pressure as improving forecasts pointed to better planting conditions in the next 10 days ahead in much of the Midwest. The CIF GULF basis was 2 cents weaker at -33N and the rail basis to St. Louis was 3 cents weaker. Water levels continue to rise in New Orleans and Baton Rouge and the Mississippi River at Baton Rouge is not expected to crest until May 20. Barge and vessel operations are not stopped, but delays are expected to slow traffic. Processor basis was 3 to 5 cents stronger in southern Minnesota and steady throughout the rest of the Midwest.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Thursday indicated a national average basis of 42 cents under the Chicago July futures, 1 cent weaker than Wednesday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter Wheat Index for Thursday indicated a national average basis of 85 cents under the Kansas City July futures contract, unchanged from Wednesday's basis. The cash market was quiet midweek and as we get closer to harvest, buyers will keep a close eye on quality and protein. DTN forecast shows episodes of showers and a variable temperature pattern in the central and southern Plains which could spell trouble for quality. The domestic rail market for 12% protein remains firm.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Thursday indicated a national average basis of 41 cents under the Minneapolis July futures contract, unchanged from Wednesday'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 down 5 cents at +65; 13.5% proteins were down 10 cents to up 5 cents at +85 to +105; 14% proteins were up 5 cents to unchanged at +110 to +120; 14.5% proteins were nominally (N) unchanged at +125N and 15% proteins were up 20 cents to down 20 cents at +160. Receipts were 11 cars, which included zero trains*.

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

Follow Mary Kennedy on Twitter @MaryCKenn

(BAS)

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