DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent weaker at 22 cents under the September futures contract while the DTN National Corn Index was up 2 cents at $3.26. The national average basis for soybeans was unchanged at 46 cents under the August futures contract while the DTN National Soybean Index was up 4 cents at $8.51. The national average basis for HRW wheat was 1 cent stronger at 23 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was up 1 cent at $4.34. The national average basis for HRS wheat was unchanged at 32 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was up 3 cents at $4.94.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.26	$0.02	-$0.23	Sep	-$0.003
Soybeans:	$8.51	$0.04	-$0.46	Aug	-$0.002
SRW Wheat:	$5.07	$0.09	-$0.18	Sep	$0.007
HRW Wheat:	$4.34	$0.01	-$0.23	Sep	$0.007
HRS Wheat:	$4.94	$0.03	-$0.32	Sep	$0.002

CORN:

The national average corn basis for Thursday is at 23 cents under the September futures, 1 cent weaker than Wednesday's basis. The September corn market closed up 2 1/2 cents after trading up 6 cents earlier in the day. Overnight rains that spilled into Thursday were helpful to many Midwest states, but some farmers on social media showed corn blown over from strong winds and heavy rains. The Eastern Corn Belt may see rain the next few days, but the DTN extended forecast remains dry in the second week with hot temperatures returning. As corn approaches pollination, the extreme temperatures are an ongoing concern for corn. Weekly corn export sales and shipments for the week ended June 25 showed export shipments above what is needed each week to achieve USDA's current export estimate in 2019-20, while total corn export commitments for 2019-20 are down 13% versus one year ago. Corn is finding support from the continued rise in cash ethanol prices, a good sign of demand returning for the market. Basis for shuttles delivered to the Pacific Northwest was unchanged at +85U and CIF NOLA basis was unchanged at +55U. River basis was pretty quiet as barge freight remains flat and there is little demand right now. Ethanol plant basis was mixed as the cash corn price remains firm this week.

SOYBEANS:

The national average soybean basis for Thursday is at 46 cents under the August futures, unchanged from Wednesday's basis. September soybeans closed up 4 cents as hot and dry conditions in eastern Midwest expected next week is worrisome for soybean plants. Soybean meal moved higher, up $3.50, giving the soybean market support. The market is also looking ahead to Friday's USDA report with Dow Jones' survey expecting an estimate for new crop ending soybean stocks at 443 million bushels versus the current 589 mb. Weekly export sales and shipments for the week ending June 25 were below what is needed each week to achieve USDA's current export estimate in 2019-20, while total export commitments in 2019-20 are down 7% versus one year ago. The track PNW basis was unchanged for July at +88Q and 3 cents stronger for last half August at +105X. Processor basis was mixed as soybean meal cash prices were $3 to $4 per ton stronger.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Thursday is at 18 cents under the August futures, 1 cent stronger than Wednesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Thursday is at 23 cents under the Kansas City September futures, 1 cent stronger than Wednesday's basis. The September KC futures closed unchanged as the market settled back from the recent strength we saw this week. The KC spot premiums are now showing strength in the lower proteins and continued weakness in 12% and higher as new crop proteins have improved. The premium for ordinary protein was 15 cents stronger, 3 cents stronger for 11% through 11.2%, 2 cents weaker for 11.4%, 5 cents weaker for 11.6% through 13% and 10 cents weaker for 13.2% through 14%. Weekly export sales were not great for HRW wheat, but the surprise winner was SRW wheat as sales to Mexico improved due to the higher prices for French SRW wheat.

HARD RED SPRING WHEAT:

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 not quoted; 13.5% proteins were unchanged at +125N; 14% proteins were unchanged at +110; 14.5% proteins were up 10 cents at +110; 15% proteins were down 10 cents to down 30 cents at +120 to +125*. Receipts were 32 cars, which included 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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