DTN Daily Basis Comments

Monday Morning Basis Update

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 steady at 34 cents under the July futures contract, while the DTN National Corn Index was up 7 cents at $3.68. The national average basis for soybeans was unchanged at 68 cents under the July futures contract, while the DTN National Soybean Index was up 3 cents at $9.30. The national average basis for HRW wheat was unchanged at 39 cents under the July futures contract and the DTN National Hard Red Winter Wheat Index was up 20 cents at $4.99. The national average basis for HRS wheat was unchanged at 11 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was up 15 cents at $6.03.

DAILY BASIS CHART:

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $3.68 $0.07 -$0.34 Jul -$0.003
Soybeans: $9.30 $0.03 -$0.68 Jul -$0.004
SRW Wheat: $4.87 $0.21 -$0.31 Jul -$0.002
HRW Wheat: $4.99 $0.20 -$0.39 Jul -$0.001
HRS Wheat: $6.18 $0.15 -$0.11 Jul $0.005

CORN:

The DTN National Corn Index for Friday indicated a national average basis of 34 cents under the Chicago July futures contract, unchanged from Thursday's basis. The corn market was higher, in part due to the Chinese dropping the anti-dumping levy they imposed a month ago on U.S. sorghum imports. The market also saw support from a jump in wheat futures, and from concerns over delays to plantings in some parts of the rain soaked Midwest. For the week, July corn was up 6 cents and December was up 5 3/4 cents. The DTN national average basis was 1 cent stronger vs. one week ago Friday. The basis for BNSF corn shuttles delivered to the PNW was 5 cents stronger at +120N as cash movement out of North Dakota has been slow due to farmers busy trying to get spring wheat and corn planted as insurance dates near.

SOYBEANS:

The DTN National Soybean Index for Friday indicated a national average basis of 68 cents under the Chicago July futures contract, unchanged from Thursday's basis. Soybeans were higher Friday as the market saw the Chinese dropping of the sorghum tariff as a positive move for overall trade with China. There was underlying pressure on the market though from the USDA announcing cancellations of export sales of 949,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 829,000 metric tons was for delivery during the 2017/2018 marketing year and 120,000 metric tons was for delivery during the 2018/2019. For the week, July soybeans were up 8 1/4 cents and November was up 6 3/4 cents. The DTN national average basis was 3 cents stronger versus one week ago Friday. Processor basis was 5 cents stronger in southeastern Nebraska and 3-to-5 cents stronger in southern Minnesota, while river basis was weaker due to a slowdown in demand at the Gulf.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Friday indicated a national average basis of 31 cents under the Chicago July futures, unchanged from Thursday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter Wheat Index for Friday indicated a national average basis of 39 cents under the Kansas City July futures contract, unchanged from Thursday's basis. Weather concerns for parts of the dry new crop wheat areas gave the market support again, but any chances for rain will likely put pressure on the market. Cash movement is slow, but mills are willing to pay up for milling quality old crop wheat that comes to market. For the week, July futures were up 16 1/2 cents and the DTN national average basis was 3 cents stronger versus 1 week ago Friday.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Friday indicated a national average basis of 11 cents under the Minneapolis July futures contract, unchanged from Thursday's basis. The Minneapolis spot hard red spring wheat cash market closed as follows, basis the Minneapolis July futures contract for #1 milling quality: 12% proteins were unchanged at +105N; 13% proteins were not quoted; 13.5% proteins were at +130; 14% proteins were unchanged at +135N to +150N; 14.5% proteins were unchanged at +155N and 15% proteins were unchanged at +180N. Receipts were four 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: www.twitter.com/MaryCKenn

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Mary Kennedy

Mary Kennedy
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