DTN Daily Basis Comments

Tuesday 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 1 cent stronger at 28 cents under the July futures contract while the DTN National Corn Index was up 1 cent at $3.33. The national average basis for soybeans was 1 cent stronger at 91 cents under the July futures contract and the DTN National Soybean Index was down 5 cents at $7.69. The national average basis for HRW wheat was 1 cent stronger at 18 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was down 9 cents at $3.79. The national average basis for HRS wheat was 1 cent stronger at 44 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was down 5 cents at $4.67.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $3.33 $0.01 -$0.28 Jul $0.008
Soybeans: $7.69 -$0.05 -$0.91 Jul $0.010
SRW Wheat: $4.06 -$0.07 -$0.29 Jul -$0.001
HRW Wheat: $3.79 -$0.09 -$0.18 Jul $0.015
HRS Wheat: $4.64 -$0.03 -$0.44 Jul $0.008

CORN:

The DTN National Corn Index for Monday indicated a national average basis of 28 cents under the Chicago July futures contract, 1 cent stronger than Friday's basis. Corn traded higher Monday, but only managed a 1/2 cent higher close in the July. The snow and rain over the weekend in key areas that have yet to plant corn gave the market some support Monday. Snow over the weekend in the Upper Midwest with cooler temperatures prevailing; DTN weather forecast calling for rain to return to the Delta region beginning Wednesday and Thursday. Cold, wet weather in the Midwest will continue to delay corn planting as we head into early May. Monday corn inspections were neutral for the week ended April 25, coming in slightly above what is needed each week to reach USDA's export estimate for the current crop year and are up 11% from the previous year for the same timeframe. Basis in the country is still strong and farmers are either too busy to care right now and/or don't like the flat price. The basis for rail delivered to the PNW was 3 cents weaker for May and secondary shuttle freight is now bid -$100 per car under tariff versus -$25 offered.

SOYBEANS:

The DTN National Soybean Index for Monday indicated a national average basis of 91 cents under the Chicago July futures contract, 1 cent stronger than Friday's basis. Soybeans ended the day down 6 1/4 cents in the July, hitting a new contract low in the process. As weather continues to be unfavorable for corn planting, that means we could see more soybeans planted than expected, unless farmers take the prevent plant option. Social media has been talking about it more, but it's still uncertain if that will happen. Even though the trade talks continue this week between the U.S. and China, there is not much hope for a resolution. Weekly inspections for soybeans were bearish as they remain well behind each week what is needed this crop year to reach the USDA forecast. The CIF NOLA basis was 1 cent weaker as slowing demand and poor river conditions continue to pressure the basis. All the locks between Lock and Dam 11 and Lock and Dam 22 on the middle Upper Mississippi River are closed as high water continues to flush down the river system, causing delays in shipping.

SOFT RED WINTER WHEAT:

The DTN National Soft Red Winter (SRW) Wheat Index for Monday indicated a national average basis of 29 cents under the Chicago July futures, unchanged from Friday's basis.

HARD RED WINTER WHEAT:

The DTN National Hard Red Winter (HRW) Wheat Index for Monday indicated a national average basis of 18 cents under the Kansas City July futures contract, 1 cent stronger than Friday's basis. The KC spot protein premiums for 13.6% through 14% were 2 cents stronger, while the cash price continues to fall as the July futures reached a new contract low Monday. Weekly inspections reported Monday were not terrible, but are still slightly behind what is needed each week to meet the USDA forecast. Total inspections for this crop year, which ends in one month, are down 2% versus one year ago.

HARD RED SPRING WHEAT:

The DTN National Hard Red Spring (HRS) Wheat Index for Monday indicated a national average basis of 44 cents under the Minneapolis July futures contract, 1 cent stronger than Friday'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 not quoted; 13% proteins were not quoted; 13.5% proteins were unchanged at +120N; 14% proteins were unchanged at +87N to +92N; 14.5% proteins were not quoted and 15% proteins were unchanged at +150. Receipts were 0 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 @MaryCKenn

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Mary Kennedy

Mary Kennedy
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