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 up 5 cents at $3.05. 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 $8.22. The national average basis for HRW wheat was 2 cents weaker at 23 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was up 17 cents at $4.49. The national average basis for HRS wheat was 5 cents stronger at 25 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was up 11 cents at $5.01.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.05	$0.05	-$0.24	Jul	$0.005
Soybeans:	$8.22	$0.10	-$0.46	Jul	-$0.002
SRW Wheat:	$5.02	$0.11	-$0.22	Jul	-$0.007
HRW Wheat:	$4.49	$0.17	-$0.23	Jul	$0.022
HRS Wheat:	$5.01	$0.11	-$0.25	Jul	$0.049

CORN:The national average corn basis for Thursday is at 24 cents under the July futures, unchanged from Wednesday’s basis. July corn closed up 5 cents Thursday, thanks to help from the higher wheat markets and another strong day for soybeans. All markets were finding strength, partially due to the U.S. dollar hitting a new two-month low. The export sales and shipments report for the week ended May 28 was bearish for corn overall. While last week's export shipments were above what is needed each week to reach USDA's current export estimate for 2019-20, total commitments are down 16% versus one year ago. Besides disappointing exports, the corn market is still trying to recover from the loss of demand due to the ethanol plant closures and the slow road to recovery. Ethanol plant basis has remained in the same pattern of plants needing spot corn pushing basis and the rest remaining steady. The shuttle basis for corn delivered to the Pacific Northwest was steady at +113N, while CIF NOLA basis was 1 cent stronger.

SOYBEANS:The national average soybean basis for Thursday is at 46 cents under the July futures, unchanged from Wednesday’s basis. July soybeans closed up 10 1/4 cents. Reaching a new, two-month high. The strong close in soymeal once again was supportive to the market. The soybean meal got a boost from USDA reporting 558,900 metric tons (mt) of old-crop soybean meal sold last week. The export sales and shipments report for the week ended May 28 was neutral for soybeans, but total commitments are down 9% versus one a year ago. In its daily reporting system, USDA said private exporters sold 60,000 mt of soybeans for delivery during the 2019/2020 marketing year to unknown destinations and 60,000 metric tons for delivery during the 2020/2021 marketing year. The track PNW shuttle was steady at +85N, while CIF NOLA basis was down 2 cents. Barge freight has been flat except on the Illinois River where values have gone up as shippers scramble to load out ahead on the July 1 closure. As Cristobal heads into the Gulf, inbound and outbound shipping will be stalled until the bad weather passes over. The hope is that the river doesn't head back in to flood stage, which will complicate matters even more.

SOFT RED WINTER WHEAT:The national average SRW wheat basis for Thursday is at 22 cents under the Chicago July futures, 1 cent weaker than Wednesday’s basis.

HARD RED WINTER WHEAT:The national average HRW wheat basis for Thursday is at 23 cents under the Kansas City July futures, 2 cents stronger than Wednesday’s basis. KC July closed sharply higher, up 14 1/2 cents as hot and dry weather is moving into the drought-stricken areas of southwestern Kansas. Weekly export sales for the week ended May 28 were the last of the old-crop year and came in slightly above what was needed to reach the USDA estimate for the 2019-20 crop year. The protein premium for ordinary proteins was down 10 cents as the harvest is adding pressure to the market, while mills are seeing reports of 9% to 10% protein in the Oklahoma harvest.

HARD RED SPRING WHEAT:The national average HRS wheat basis for Thursday is at 25 cents under the Minneapolis July futures, 5 cents stronger than Wednesday’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 down 5 cents to down 45 cents at +155*; 14.5% proteins were unchanged at +200N and 15% proteins were at +210. Receipts were 58 cars, which includes two trains.* (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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