DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 24 cents under the July futures contract while the DTN National Corn Index was unchanged 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 7 cents at $8.12. The national average basis for HRW wheat was 1 cent weaker at 25 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was up 5 cents at $4.32. The national average basis for HRS wheat was 5 cents weaker at 30 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was down 1 cent at $4.90.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.00	$0.00	-$0.24	Jul	$0.003
Soybeans:	$8.12	$0.07	-$0.46	Jul	$0.001
SRW Wheat:	$4.91	$0.03	-$0.21	Jul	-$0.009
HRW Wheat:	$4.32	$0.05	-$0.25	Jul	-$0.016
HRS Wheat:	$4.90	-$0.01	-$0.30	Jul	-$0.050

CORN:The national average corn basis for Wednesday is at 24 cents under the July futures, unchanged from Tuesday’s basis.July corn closed down 1/4 cent, unable to find any support from the increase in ethanol plant production reported by the EIA, meaning corn demand should pick up as well. We have seen some ethanol plants posting higher basis levels for spot corn over the past three to four weeks, but farmers have been slow to partake in areas where fieldwork is still happening. There was talk of Taiwan buying a few cargoes of U.S. corn, which may be reported Thursday or Friday by USDA in its daily private sales report. The market didn't act like there was fresh business, but the shuttle basis delivered to the Pacific Northwest was higher Tuesday evening, possibly indicating the business. The Wednesday evening shuttle basis was also higher, up 2 cents for June and up 3 cents for July. Ethanol plant basis is still a mixed bag depending on what plants are looking for spot cash corn.

SOYBEANS:The national average soybean basis for Wednesday is at 46 cents under the July futures, unchanged from Tuesday’s basis. July soybeans reached a two-week high, closing up 7 cents midweek along with a higher close in soybean meal. In their daily private export sales reporting, USDA said 66,000 metric tons (mt) of soybeans were sold to unknown destinations for 2019-20, with 120,000 mt for 2020-21 delivery. Soybean exports are still running behind for the current crop year, adding underlying pressure to the market. The track PNW basis was up 2 cents for June and 5 cents for July, with secondary shuttle freight now bid at even money for first half June. Processor basis has been steady for the most part, but the strength in soybean meal will be good for crush margins.

SOFT RED WINTER WHEAT:The national average SRW wheat basis for Wednesday is at 21 cents under the Chicago July futures, 1 cent weaker than Tuesday’s basis.

HARD RED WINTER WHEAT:The national average HRW wheat basis for Wednesday is at 25 cents under the Kansas City July futures, 1 cent weaker than Tuesday’s basis. A weaker dollar and a change in weather forecasts for Russia and the Black Sea pushed the KC July up 7 cents. Mills are still watching for new crop to come to market, but while quality so far in Oklahoma has been decent, there is talk proteins are moving lower as harvest heads north. As harvest heads to Kansas next week, mills will be watching results given the uncertainty of what drought and freeze damage has done to the crop.

HARD RED SPRING WHEAT:The national average HRS wheat basis for Wednesday is at 30 cents under the Minneapolis July futures, 5 cents weaker than Tuesday’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 to up 10 cents at +160N to +200B; 14.5% proteins were up 50 cents at +200 and 15% proteins were not quoted. Receipts were 42 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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