DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 22 cents under the September futures contract while the DTN National Corn Index was down 11 cents at $3.15. The national average basis for soybeans was unchanged at 46 cents under the August futures contract while the DTN National Soybean Index was down 9 cents at $8.41. The national average basis for HRW wheat was 1 cent weaker at 24 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was down 6 cents at $4.28. The national average basis for HRS wheat was 6 cents weaker at 38 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was down 6 cents at $4.88.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.15	-$0.11	-$0.22	Sep	$0.005
Soybeans:	$8.41	-$0.09	-$0.46	Aug	$0.001
SRW Wheat:	$5.15	$0.08	-$0.19	Sep	-$0.006
HRW Wheat:	$4.28	-$0.06	-$0.24	Sep	-$0.016
HRS Wheat:	$4.88	-$0.06	-$0.38	Sep	-$0.067

CORN:

The national average corn basis for Friday is at 22 cents under the September futures, 1 cent stronger than Thursday's basis. The September corn contract closed down 11 1/2 cents Friday, 14 1/4 cents below the high of a day filled with bullish news. Early Friday morning, USDA in its daily private export sale report said 1,365,000 metric tons (mt) of corn were sold to China, the biggest daily sale in 26 years according to market analysts. Of that total, 765,000 mt is for delivery during the 2019-20 marketing year and 600,000 mt is for delivery during the 2020-21 marketing year. Then the late Friday morning USDA estimates of ending corn stocks were slightly bullish. USDA reduced its estimate of U.S. ending corn stocks from 3.323 billion bushels (bb) to 2.648 bb, on the lower end of expectations. DTN Lead Analyst Todd Hultman noted, "Friday's lower prices were likely more related to trader nervousness about weather as rain was falling across Michigan and Ohio ahead of the weekend." September futures were down 6 1/4 cents for the week. The shuttle basis delivered to the Pacific Northwest was flat for July through August. CIF Gulf basis was 2 cents lower for July, but August/Sep was 4 cents stronger. Spot ethanol basis remains flat and only plants needing cash corn to crush seem to be pushing basis a little.

SOYBEANS:

The national average soybean basis for Friday is at 46 cents under the August futures, unchanged from Thursday's basis. August soybeans were down 9 1/4 cents Friday and lost 4 cents for the week. While the forecast for rain in parts of the Corn Belt pressured the market early, the USDA report added more pressure. USDA increased its estimate of U.S. ending soybean stocks from June's 395 mb to 425 mb in the July 10 report, and old-crop ending stocks at 620 mb, up 35 million. In addition, the tensions between China and the U.S. continue to create uncertainty over hope of more Chinese soybean purchases. Soybean meal had a rough end to the week, closing down $4.80 per ton, while soybean oil was only slightly lower. The track PNW shuttle basis and CIF NOLA basis remains steady, with the PNW basis staying unchanged for well over a week. With the cheaper soybean meal prices, processors have not been in the mood to push basis nearby.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 19 cents under the August futures, 1 cent weaker than Thursday's basis.

The September SRW futures set a new 2-month high Friday, closing up 9 cents and boasting a sharply higher gain of 42 cents for the week. Given the shrinking crop in France, the market is hoping U.S. wheat can become a bigger player on the export scene. First, we have to harvest a good quality crop and, so far, harvest samples are showing good protein and slightly lower test weight than last year.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Friday is at 24 cents under the Kansas City September futures, 1 cent weaker than Thursday's basis. The September KC futures closed down 4 3/4 cents Friday, but gained 18 cents for the week. Milling basis was steady, while the Gulf basis was 10 cents stronger for the week and the PNW basis was 10 cents stronger for September. The weekly U.S. Wheat Associates harvest report noted harvest continues to move north through the central U.S. with Texas and Oklahoma 100% complete, Kansas 90%, Colorado 53%, and Nebraska 42%. The average protein so far is at 11.6%, slightly higher than last year.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 38 cents under the Minneapolis September futures, 6 cents weaker than Thursday's basis. 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 +110N; 14.5% proteins were unchanged at +110N; 15% proteins were up 5 cents to unchanged at +125B*. Receipts were 26 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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