DTN Daily Basis Comments

Friday Morning Basis Update

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DAILY BASIS:

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $3.31 $0.02 -$0.43 Sep $0.007
Soybeans: $9.33 $0.07 -$0.61 Aug $0.007
SRW Wheat: $4.48 $0.02 -$0.32 Sep -$0.005
HRW Wheat: $4.15 $0.05 -$0.66 Sep -$0.003
HRS Wheat: $6.95 $0.05 -$0.41 Sep -$0.010

CORN:

The DTN National Corn Index for Thursday indicated a national average basis of 43 cents under the Chicago September futures contract, 1 cent stronger than Wednesday's basis. The corn market was pretty quiet on Thursday and as we have been saying over and over, the weather is driving force for price direction. Export sales reported Thursday were also supportive to the market, coming in above what the trade had expected. Basis was firm as farmer selling has been lackluster for the week. If the cash price starts to rally again, that could change and likely pressure basis.

SOYBEANS:

The DTN National Soybean Index for Thursday indicated a national average basis of 61 cents under the Chicago August futures contract, 1 cent stronger than Wednesday's basis. Soybeans posted gains Thursday as rainfall expected in the western Corn Belt did not meet expectations. Adding support was a strong export sales report, coming in near the high end of trade estimates. The rail basis delivered to St. Louis was 2 cents stronger and processor basis in southern Minnesota was 2 cents stronger. Basis still feels firm, especially among processors looking for supplies. Gulf basis remains strong as the U.S. is competitive right now in the export market, thanks to Brazil prices remaining higher than our prices.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Thursday indicated a national average basis of 32 cents under the Chicago September 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 66 cents under the Kansas City September futures contract, 1 cent weaker than Wednesday's basis. The spot KC basis was unchanged with no cars showing for sale. PNW and Gulf basis remain steady; not much activity right now. Wheat export sales for were near the high end of market expectations, adding support to the cash market. Prices are getting cheap enough to keep our regular buyers in the loop, but we need to find some fresh business.

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 September futures contract, 1 cent weaker than Wednesday's basis. The Minneapolis spot HRS wheat cash market closed as follows, basis the Minneapolis September futures contract for #1 milling quality: 12% proteins were nominally unchanged at +5N to +10N; 13% proteins were not quoted; 14% proteins were unchanged at +55B* to +115N; 14.5% proteins were unchanged at +85N to +115N and 15% proteins were unchanged at +115N to +150A. Receipts were 82 cars, which included two trains.* (Bid=B Ask=A) Wheat on the MGEX floor is traded delivered Chicago/beyond. The U.S. drought monitor Thursday showed drought intensified in the northern states with 93.4% of North Dakota and 81.7% of Montana facing drought, further deteriorating spring wheat and durum crops.

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

Follow Mary Kennedy on Twitter @MaryCKenn

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Mary Kennedy

Mary Kennedy
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