DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 24 cents under the July futures contract while the DTN National Corn Index was up 2 cents at $3.00. The national average basis for soybeans was unchanged at 46 cents under the July futures contract while the DTN National Soybean Index was up 10 cents at $8.05. The national average basis for HRW wheat was unchanged at 24 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was down 12 cents at $4.27. The national average basis for HRS wheat was 3 cents weaker at 25 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was down 8 cents at $4.91.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.00	$0.02	-$0.24	Jul	$0.006
Soybeans:	$8.05	$0.10	-$0.46	Jul	$0.002
SRW Wheat:	$4.88	-$0.06	-$0.20	Jul	$0.009
HRW Wheat:	$4.27	-$0.12	-$0.24	Jul	-$0.001
HRS Wheat:	$4.91	-$0.08	-$0.25	Jul	-$0.036

CORN:The national average corn basis for Tuesday is at 24 cents under the July futures, 1 cent stronger than Monday’s basis. July corn closed up 1 cent as the market remains in a tight range. Late Monday afternoon, USDA in their weekly Crop Progress report said that 93% of the U.S. corn crop was planted with 78% emerged. North Dakota remains the furthest behind at 75%, and according to farmers there, the 2019 corn harvest continues. The condition of the corn crop showed improvements versus last week, with ratings currently above average. Corn is still suffering from a slowdown in demand both domestically and on the export front, keeping the cash price from moving higher. The basis for shuttles delivered to the Pacific Northwest was 2 cents stronger for June, while CIF NOLA basis was 1-cent weaker. The story for ethanol plant basis hasn't changed much as plants needing spot corn continue to bid higher. Similar to soybeans on the Illinois River, corn basis there is stronger as shippers load barges to get them moving off the river before the closure July 1.

SOYBEANS:The national average soybean basis for Tuesday is at 46 cents under the July futures, unchanged from Monday’s basis. July soybeans closed up 10 cents, finding support from the strong close in soybean oil as the crude oil market and palm oil markets closed higher. Monday afternoon crop progress report showed the first soybean condition of the season with ratings slightly above average at 70% good to excellent. The report showed that as of May 31, 75% of the crop was versus the five year average of 68%. In their daily private export sales report, USDA said that 132,000 metric tons of soybeans were sold to China for the 2020-21 marketing year. The track PNW shuttle basis was 3 cents stronger for June and 2 cents stronger for July, while CIF NOLA basis was 1-cent stronger. Basis along the Illinois River was 2-3 cents stronger as shippers continue to load out ahead of the July 1 closure and rail delivered to St. Louis was 3 cents stronger.

SOFT RED WINTER WHEAT:The national average SRW wheat basis for Tuesday is at 20 cents under the Chicago July futures, 1 cent stronger than Monday’s basis.

HARD RED WINTER WHEAT:The national average HRW wheat basis for Tuesday is at 24 cents under the Kansas City July futures, unchanged from Monday’s basis. The KC July closed down 11 3/4 cents as weather improves in most of the EU along with harvest pressure in the U.S. turning up the dial. If weather holds up, we should see the harvest move up from Oklahoma in to Kansas the next few weeks as the hot weather will put its final touch on the crop. The spot KC basis was weaker across the board as mills are looking ahead to cheaper new crop coming to market.

HARD RED SPRING WHEAT:The national average HRS wheat basis for Tuesday is at 25 cents under the Minneapolis July futures, 3 cents weaker than Monday’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 +160N to +190N; 14.5% proteins were at +150B* and 15% proteins unchanged at +150N to +160N. 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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