DTN Daily Basis Comments

Thursday 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 3 cents stronger at 26 cents under the July futures contract, while the DTN National Corn Index was up 4 cents at $3.28. The national average basis for soybeans was unchanged at 62 cents under the July futures contract, while the DTN National Soybean Index was unchanged at $8.27. The national average basis for HRW wheat was 4 cents weaker at 6 cents under the July futures contract and the DTN National Hard Red Winter Wheat Index was up 2 cents at $4.83. The national average basis for HRS wheat was unchanged at 14 cents under the July futures contract, while the DTN National Hard Red Spring Wheat Index was up 3 cents at $5.38.

DAILY BASIS CHART:

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $3.28 $0.04 -$0.26 Jul $0.035
Soybeans: $8.27 $0.00 -$0.62 Jul -$0.005
SRW Wheat: $4.67 $0.11 -$0.21 Jul $0.007
HRW Wheat: $4.83 $0.02 -$0.06 Jul -$0.036
HRS Wheat: $5.38 $0.03 -$0.14 Jul -$0.001

CORN:

The DTN National Corn Index for Wednesday indicated a national average basis of 26 cents under the Chicago July futures contract, 3 cents stronger than Tuesday's basis. The corn market picked up a slight gain on the close after trading in a 10-cent range during the day session. The current weather forecast in the Midwest is bearish for most of the growing areas. Lack of fresh news in the corn market will likely keep prices in a tight range going forward. The BNSF shuttle basis for corn delivered to the Pacific Northwest was stronger as exporters continue to bid for corn to move west to wait to fulfill export obligations. Ethanol plant basis was firm, as well, as end users continue to look for nearby needs.

SOYBEANS:

The DTN National Soybean Index for Wednesday indicated a national average basis of 62 cents under the Chicago July futures contract, unchanged from Tuesday's basis. Soybeans staged a slight recovery midweek, but the market is still sensitive to the ongoing trade war and the possibility of China slapping a 25% tariff on U.S. soybeans in a few weeks. More rain forecast in the Midwest is also adding pressure, but there are areas where too much rain has fallen, and those areas need a break right now to dry out some. Processors are still looking for old-crop beans and continue to pay above posted prices in some areas, but the sharp loss in the cash price recently is holding farmers back.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter Wheat Index for Wednesday indicated a national average basis of 21 cents under the Chicago July futures, I cent 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 6 cents under the Kansas City July futures contract, 4 cents weaker than Tuesday's basis. The cash price recovered a little as the market turns its sights to the possibility of quality issues due to rain in winter wheat areas that have mature wheat standing. While yields and protein remain on their radar, new concern of lower test weights and possible sprout damage has entered the picture due to the rains the past week.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring Wheat Index for Wednesday indicated a national average basis of 14 cents under the Minneapolis July futures contract, unchanged from Tuesday's basis. The Minneapolis spot HRS wheat cash market closed as follows, basis the Minneapolis July futures contract for #1 milling quality: 12% proteins were unchanged at +80N; 13% proteins were not quoted*; 13.5% proteins were up 5 cents at +115; 14% proteins were down 15 cents to up 10 cents at +135 to +160; 14.5% proteins were unchanged at +155N; and 15% proteins were unchanged at +175N. Receipts were 101 cars, which included two 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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Mary Kennedy

Mary Kennedy
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