The national average basis for corn was unchanged at 8 cents under the September futures contract and the DTN National Corn Index was up 6 cents at $4.23. The national average basis for soybeans was unchanged at 70 cents under the August futures contract and the DTN National Soybean Index was up 20 cents at $8.32. The national average basis for HRW wheat was unchanged at 22 cents under the September futures contract and the DTN National Hard Red Winter Wheat Index was up 8 cents at $4.18. The national average basis for HRS wheat was unchanged at 46 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was up 4 cents at $4.83.
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The DTN National Corn Index for Friday indicated a national average basis of 8 cents under the Chicago September futures contract, unchanged from Thursday's basis. While corn futures closed up 6 cents Friday, there is nothing to brag about for the week, as the September futures lost a total of 23 1/2 cents on the week. The heat wave covering the Midwest was expected to taper off over the weekend and there was concern for stress on livestock. Also, when the weather is dangerously hot, livestock becomes sluggish, which is bearish for feed demand. Minnesota and Wisconsin are seeing severe weather move through their states, an almost everyday occurrence because of the heat all week stirring up storms. The cash market obviously lost a good deal this week, causing the basis to work harder than it already has been. The basis for shuttles delivered to the Pacific Northwest was steady for July at +95U and 2 cents weaker for August at +98U. Secondary shuttle freight for last half July is bid at +100 over tariff per car and offered at +500 per car. Freight for August is showing no bids or offers right now. Basis in the country remains firm, but if crop conditions continue to improve, that may change. River terminal basis is weaker with less activity at the Gulf for exports.SOYBEANS:
The DTN National Soybean Index for Friday indicated a national average basis of 70 cents under the Chicago August futures contract, unchanged from Thursday's basis. August soybean futures finally had a higher close to end the week, up 20 1/4 cents on Friday, but for the week the August contract lost 11 3/4 cents after spending most of the week lower. During the week, traders didn't seem bothered by the potential impact on the new crop from the heat wave in the Midwest as it was followed by rain and cooler temps in some areas of the heat-stricken Midwest. Perhaps the jump in futures on Friday was due to media reports pointing to China purchasing U.S. sorghum for the first time since April, with the market thinking that may mean China will follow through with soybean purchases. Basis on the river was weaker as demand remains slow. In the Upper Mississippi River, some terminals continue to wait for empty barges, which are slow to get up to the St. Paul District. Processor basis remains firm as many buyers continue buy on an as needed basis. PNW shuttle basis still steady at +75Q.
The DTN National Soft Red Winter (SRW) Wheat Index for Friday indicated a national average basis of 19 cents under the Chicago September futures, unchanged from Thursday's basis.HARD RED WINTER WHEAT:
The DTN National Hard Red Winter (HRW) Wheat Index for Friday indicated a national average basis of 22 cents under the Kansas City September futures contract, unchanged from Thursday's basis. The cash price gained 7 cents Friday with support coming from the higher Paris milling futures, along with the strong gains in the soybean complex. The spot KC basis for 12% proteins through 12.8% was 1 cent stronger. In their weekly harvest report, U.S. Wheat Associates said HRW wheat harvest is progressing rapidly through the central Great Plains as dry, hot weather continues. Harvest is 99% complete in Texas and Oklahoma, 91% in Kansas, 35% in Colorado and 28% in Nebraska. Test cutting has begun in South Dakota. In the Pacific Northwest, harvest is underway with Washington 7% complete, Oregon 11% and Idaho 4%. The protein average for the week remained at 11.3% and test weight improved to 60.3 pounds, with farmers reporting that yields so far are above average; better than expected.
The DTN National Hard Red Spring (HRS) Wheat Index for Friday indicated a national average basis of 46 cents under the Minneapolis September futures contract, unchanged from Thursday's basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis September futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were unchanged at +90N; 13.5% proteins were not quoted; 14% proteins were unchanged at +90N to +95N; 14.5% proteins were unchanged at +75; 15% proteins were unchanged to up 5 cents at +95N to +105. Receipts were 36 cars, which included one train.* (Bid=B Ask=A Nominal=N) Wheat on the MGEX floor is traded delivered Chicago/beyond.
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