DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 16 cents over the July futures contract while the DTN National Corn Index was up 14 cents at $7.48. The national average basis for soybeans was unchanged at 6 cents over the July futures contract while the DTN National Soybean Index was up 20 cents at $15.96. The national average basis for HRW wheat was unchanged at 21 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was up 10 cents at $7.16. The national average basis for HRS wheat was unchanged at 30 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was up 7 cents at $7.67.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$7.48	$0.14	$0.16	Jul	$0.002
Soybeans:	$15.96	$0.20	$0.06	Jul	-$0.004
SRW Wheat:	$7.44	$0.08	-$0.18	Jul	-$0.010
HRW Wheat:	$7.16	$0.10	-$0.21	Jul	$0.003
HRS Wheat:	$7.67	$0.07	-$0.30	Jul	-$0.003

CORN:

The national average corn basis for Friday is at 16 cents over the July futures, unchanged from Thursday's basis. July corn closed up 13 1/2 cents Friday after trading lower early in the day, gaining 59 cents for the week. Early Thursday morning, USDA said private exporters sold 1.360 million metric tons (mmt) of corn for delivery to China during the 2021-22 marketing year and 188,468 metric tons (mt) of corn for delivery to an unknown destination, with 86,868 mt for delivery during the 2020-21 marketing year and 101,600 mt for delivery during the 2021-22 marketing year. There had been talk of China buying, and normally that would perk up the corn market. But given that corn has been on the rise for weeks, it just added to the bucket of other factors supporting cash corn prices. Track PNW basis is unchanged for May through new crop, with CIF NOLA basis 2 cents weaker. Secondary shuttle freight is bid even money to tariff for May and offered at $100 over; but after May until September, freight is bid and offered below tariff. Last-half September is bid at $200 per car over tariff and offered at $800 over; the price drastically increases for October at $1,000 over bid against offers of $1,500 over.

SOYBEANS:

The national average soybean basis for Friday is at 6 cents over the July futures, unchanged from Thursday's basis. July soybeans closed at a new high Friday, up 20 1/4 cents and up 55 1/2 cents for the week. July soybean meal closed sharply higher, up $14.60, while soybean oil closed nearly unchanged, up 0.13 cent. The November soybeans led the charge Friday, making a new contract high; for the week Nov ended up 93 3/4 cents. Much of the concern in this market remains tight old-crop supplies and that sentiment is spilling over into the new-crop month. According to line-up data from shipping agency Cargonave, U.S. meat processor Perdue is shipping one cargo of 31,450 mt of Brazilian soybeans into the United States from a port north of Brazil. There has also been chatter that at least two more vessels of soybeans have been bought from Brazil by the U.S. for May arrival and others scheduled for summer. If this continues, we could see the basis weaken and possibly the cash price depending on just how much is coming. Basis levels were quiet for track PNW and St. Louis, while CIF Gulf basis for June was 5 cents stronger. Processor basis has slowed, but it's pretty much name your price for some. As long as crush margins stay strong, processers will want to keep beans coming to their plants.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 18 cents under the July futures, 1 cent weaker than Thursday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Friday is at 21 cents under the Kansas City July futures, unchanged from Thursday's basis. July KC wheat closed up 10 cents and for the week gained 33 1/4 cents thanks to the strength in the corn market. There were no cars sold on the KC spot market Friday, but mills are still willing to buy given the competition from feeders. Plenty of HRW wheat and even SRW and SWW continues to move into the feed market. Until we see the new crop in the bin, exporters will be competing for old crop.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 30 cents under the Minneapolis July futures, unchanged from Thursday'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 +120, 14.5% proteins were up 20 cents to unchanged at +120 and 15% proteins were unchanged at +119N to +140. Receipts were 8 cars, which included zero train(s).* (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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