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 Tuesday is at 16 cents over the July futures, unchanged from Monday's basis. July corn logged a "Turnaround Tuesday," closing up 10 1/2 cents after Monday's dismal loss. Parana, Brazil's, Department of Rural Economy (Deral) lowered the second corn crop good rating to 25%, down 3% versus last week, while poor conditions increased to 30% from 27% last week, well below one year ago. Early Tuesday, USDA reported private exporters sold 680,000 metric tons (mt) of corn for delivery to China during the 2021-22 marketing year. Monday afternoon's USDA Crop Progress report showed for the week ended May 9, U.S. corn planting jumped 21 percentage points to 67% complete and is the farthest along since 2015 at the same time. Track Pacific Northwest shuttle basis is 5 cents stronger for May and 7 cents stronger for June as recent corn sales have been added to the books. CIF NOLA basis was 3 cents weaker for June and track St. Louis was 2 cents weaker.

SOYBEANS:

The national average soybean basis for Tuesday is at 5 cents over the July futures, 1 cent weaker than Monday's basis. July soybeans were up 27 1/4 cents, but the star of the day was the May contract (expiring May 14) which made a high not seen since 2012. The market continues to trade the tight supplies of U.S. soybeans and the possibility more corn acres may get planted given the surge in new-crop price. USDA reported Monday afternoon that U.S. soybean planting was 42% complete as of May 9, 10 days ahead of the 22% average and a record for this time of year. July soybean oil, up 0.96 cent, added support to the market and soybean meal followed along, up $4.70. The May 12 USDA WASDE report will replace "biodiesel" with "biofuel" in the U.S. Soybeans and Products Supply and Use in the soybean oil section, reflecting recent changes to the monthly biofuels data reported by the U.S. Energy Information Administration. The surge in the futures Tuesday caused basis to fall back a little with some Midwest processors weakening basis by 5 cents. CIF NOLA basis was 2 cents stronger for May and June and track St. Louis was 1 cent stronger.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Tuesday is at 19 cents under the July futures, 2 cents weaker than Monday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Tuesday is at 21 cents under the Kansas City July futures, unchanged from Monday's basis. The KC July closed up 7 cents, unable to follow the surge in Minneapolis and Chicago. The market isn't as concerned over HRW conditions given the rains over the weekend and Monday's Crop Progress report showing a sharp improvement in the HRW wheat rating. Basis remains firm and as feed wheat demand continues, mills will continue to compete for bushels. Soft white wheat is high priced right now as the PNW continues to suffer from drought and demand has been brisk for old crop stocks.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is at 31 cents under the Minneapolis July futures, unchanged from Monday'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 at +120, 14% proteins were unchanged at +115N to +120N, 14.5% proteins were down unchanged at +110N and 15% proteins were unchanged at +125N to +150N. Receipts were 1 car, 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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