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 down 20 cents at $7.28. The national average basis for soybeans was unchanged at 6 cents over the July futures contract while the DTN National Soybean Index was down 2 cents at $15.93. 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 down 33 cents at $6.83. The national average basis for HRS wheat was 1 cent weaker at 31 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was down 45 cents at $7.22.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$7.28	-$0.20	$0.16	Jul	$0.003
Soybeans:	$15.93	-$0.02	$0.06	Jul	$0.001
SRW Wheat:	$7.13	-$0.31	-$0.17	Jul	$0.003
HRW Wheat:	$6.83	-$0.33	-$0.21	Jul	$0.006
HRS Wheat:	$7.22	-$0.45	-$0.31	Jul	-$0.011

CORN:

The national average corn basis for Monday is at 16 cents over the July futures, unchanged from Friday's basis. After reaching its highest close in eight years Friday, July corn fell back 20 1/2 cents Monday, pretty much following the mood of the entire grain complex. The central Corn Belt saw good moisture over the weekend, with more rain in the seven-day forecast for southern Iowa and U.S. Southern Plains. Parts of the Upper Midwest have seen cooler nights and days in the past week, but a warming trend is expected to start at midweek. USDA reported Monday morning that private exporters sold 1.020 million metric tons (mmt) of corn for delivery to China during the 2021-22 marketing year. USDA also reported cancellations of export sales of 280,000 metric tons (mt) of corn for delivery to China during the 2020-21 marketing year. Weekly corn inspections for the week ended May 6 showed total inspections in 2020-21 are now up 79% from the previous year. Track PNW shuttle basis was flat, while track St. Louis was 1 cent stronger. Basis throughout most of the Midwest was steady, even after the 20-cent loss in the cash price. Farmers are busy right now, which means very little cash corn is moving.

SOYBEANS:

The national average soybean basis for Monday is at 6 cents over the July futures, unchanged from Friday's basis. July soybeans closed down 2 1/4 cents Monday, a victory of sorts given the sharp losses in the grains complex. However, new-crop November beans closed down 19 1/4 cents as weather in the U.S. is currently favorable for newly planted beans. Front-month soybeans continue to react to the tight supplies of U.S. soybeans as traders look ahead to the May 12 USDA WADSE report. Monday's weekly inspections report for the week ended May 6 showed total inspections up 62% from the previous year. Track St. Louis basis was 7 cents stronger for May, while CIF NOLA was 5 cents stronger. Processor basis was steady for the most part with some plans pushing basis 5 cents, but there just aren't many takers. I've talked about this a few times already, but talk of more Brazil soybeans coming in to the U.S. will eventually hurt basis values if the amounts continue to grow.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Monday is at 17 cents under the July futures, 1 cent stronger than Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Monday is at 21 cents under the Kansas City July futures, unchanged from Friday's basis. cents under the Kansas City July futures, unchanged from Friday's basis. KC July tumbled 33 1/4 cents to start the week, thanks to the rains that fell in much of the Plains over the weekend and also pulled lower by the losses in corn. There were no cars for sale on the KC spot market, but talk continues that feeders are still buying wheat, which could get hard for mills to buy until we see new-crop bushels.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Monday is at 31 cents under the Minneapolis July futures, 1 cent weaker than Friday'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 10 cents to unchanged at +115* to +120, 14.5% proteins were down 10 cents at +110 and 15% proteins were up 6 cents to up 10 cents at +125* to +150. Receipts were 56 cars, which included two 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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