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 $3.55. The national average basis for soybeans was unchanged at 83 cents under the November futures contract while the DTN National Soybean Index was up 6 cents at $7.83. The national average basis for HRW wheat was 1 cent stronger at 21 cents under the September futures contract, while the DTN National Hard Red Winter Wheat Index was unchanged at $3.71. The national average basis for HRS wheat was 1 cent stronger at 48 cents under the September futures contract, while the DTN National Hard Red Spring Wheat Index was down 5 cents at $4.40.
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The DTN National Corn Index for Wednesday indicated a national average basis of 8 cents under the Chicago September futures contract, unchanged from Tuesday's basis. September corn futures posted gains at midweek as we near first notice day for the contract at the end of the week. The weekly Energy Information Administration report was supportive for corn as ethanol supply in the U.S. declined for a second week last week even though plant production rebounded from an 18-week low. This will likely change in the coming week as more plants slow production or close entirely. Corn Plus ethanol plant in Minnesota, which produces 51 million gallons a year, announced plans to shut down production. As this continues, we will see less demand for corn in the ethanol sector. The basis for shuttles delivered to the Pacific Northwest was steady for September and CIF NOLA basis was unchanged. Ethanol plant basis continues to be steady to weaker as margins have been flat for the week.SOYBEANS:
The DTN National Soybean Index for Wednesday indicated a national average basis of 83 cents under the Chicago November futures contract, unchanged from Tuesday's basis. November futures rebounded to close higher after reaching the contract's lowest point in almost 14 weeks. The trade war saga continues and, while there is talk of another meeting between the two countries in September, there is nothing set in stone yet as to when that will happen. The basis for shuttles delivered to the PNW was weaker again as the addition of tariffs has pretty much shut the door for China exports off the PNW for now. The CIF GULF basis was weaker as demand has been slow. On top of that, shoaling in the upper and lower Mississippi River has been creating slowdowns. The upper Mississippi River reopened Wednesday after a weekend shutdown for dredging due to unsafe passage for barges due to shoaling.
The DTN National Soft Red Winter (SRW) Wheat Index for Wednesday indicated a national average basis of 15 cents under the Chicago September futures, 1 cent stronger than Tuesday's basis.HARD RED WINTER WHEAT:
The DTN National Hard Red Winter (HRW) Wheat Index for Wednesday indicated a national average basis of 21 cents under the Kansas City September futures contract, 1 cent stronger than Tuesday's basis. The cash price was slightly lower on the day, as the spring wheat market tried to pull winter wheat lower. Statistics Canada estimated the country's reported all-wheat production at 31.251 million metric tons (mt), down 950,000 metric tons (mt) from 2018-19, mainly due to lower durum and winter wheat production. Spring wheat production is was pegged up 4.9%, the largest in six years, which added to the loss in the spring wheat futures, in addition to some harvest pressure.HARD RED SPRING WHEAT:
The DTN National Hard Red Spring (HRS) Wheat Index for Wednesday indicated a national average basis of 48 cents under the Minneapolis September futures contract, 1 cent stronger than Tuesday'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 +85N; 13.5% proteins were unchanged at +80N; 14% proteins were up 20 cents to unchanged at +110; 14.5% proteins were unchanged at +75N to +85N; 15% proteins were down 35 cents to unchanged at +85 to +120. Receipts were 44 cars, which included 1 train.* (Bid=B Ask=A Nominal=N) Wheat on the MGEX floor is traded delivered Chicago/beyond.
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