DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent weaker at 25 cents under the July futures contract while the DTN National Corn Index was down 2 cents at $3.01. The national average basis for soybeans was 1 cent weaker at 46 cents under the July futures contract while the DTN National Soybean Index was down 7 cents at $7.95. The national average basis for HRW wheat was 3 cents weaker at 27 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was up 4 cents at $4.44. The national average basis for HRS wheat was 6 cents weaker at 31 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was unchanged at $4.94.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.01	-$0.02	-$0.25	Jul	-$0.002
Soybeans:	$7.95	-$0.07	-$0.46	Jul	-$0.004
SRW Wheat:	$5.00	$0.06	-$0.21	Jul	$0.001
HRW Wheat:	$4.44	$0.04	-$0.27	Jul	-$0.024
HRS Wheat:	$4.94	$0.00	-$0.31	Jul	-$0.053

CORN: The national average corn basis for Friday is at 25 cents under the July futures, 1 cent weaker than Thursday’s basis. After the sharp rise in corn Thursday, the market pulled back, with July closing down 1 3/4 cents Friday, but for the week, ended up gaining 7 3/4 cents. Weekly export sales and shipments for the week ended May 21 were bearish for corn with shipments coming in a little below what is needed each week to achieve USDA's current 2019-20 estimate, while total export commitments are down 17% versus one year ago. Friday morning in its daily private exports sales report, USDA noted that 101,600 metric tons of corn were sold for delivery to unknown destinations during the 2019-20 marketing year. Basis for shuttles delivered to the Pacific Northwest was steady at +108N for June and July. Ethanol plant basis remains mixed, but there is still a lack of heavy selling by farmers as they continue to remain busy in the fields. The cash price did improve versus one week ago, with the DTN National Corn Index up 9 cents for the week and the DTN national average basis 1 cent stronger versus one week ago.

SOYBEANS: The national average soybean basis for Friday is at 46 cents under the July futures, 1 cent weaker than Thursday’s basis. July soybeans were down 6 1/4 cents, but for the week, gained 7 1/2 cents. The market is still concerned over the tensions between China and the U.S. and if that will deter soybean exports. Friday's delayed weekly export sales and shipments report showed that for the week ended May 21, export shipments were below what is needed each week to reach USDA's current export estimate in 2019-20, with export commitments down 9% versus one year ago. In their daily private export sales report, USDA noted sales of 66,000 metric tons is for delivery during the 2019-20 marketing year and 66,000 metric tons is for delivery during the 2020-21 marketing year. The track PNW basis has been flat and Friday's basis was 3 cents weaker at +80N. Processor basis has been steady as crush margins continue to recover and soybean meal prices showed a loss for the week.

SOFT RED WINTER WHEAT: The national average SRW wheat basis for Friday is at 21 cents under the Chicago July futures, unchanged from Thursday’s basis.

HARD RED WINTER WHEAT:The national average HRW wheat basis for Friday is at 27 cents under the Kansas City July futures, 3 cents weaker than Thursday’s basis. On the last trading date of the 2019-20 crop year, KC July futures closed up 6 1/4 cents, and for the week, gained 26 cents. The market has been focused on the global weather issues, including the forecast for most of the continental U.S., which is mostly dry for the next two weeks. Hot weather settling in will only add to drought problems in the southwestern U.S. Plains.

HARD RED SPRING WHEAT:The national average HRS wheat basis for Friday is at 31 cents under the Minneapolis July futures, 6 cents weaker than Thursday’s basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis July futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were not quoted; 14% proteins were unchanged at +140N; 14.5% proteins were unchanged at +130N and 15% proteins were up 10 cents at +160*. Receipts were 26 cars, which includes one train.* (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 her on Twitter @MaryCKenn

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