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 8 cents at $7.30. The national average basis for soybeans was 1 cent weaker at 4 cents over the July futures contract while the DTN National Soybean Index was up 26 cents at $16.47. 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 20 cents at $6.70. The national average basis for HRS wheat was unchanged at 31 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was down 5 cents at $7.34.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$7.30	-$0.08	$0.16	Jul	-$0.005
Soybeans:	$16.47	$0.26	$0.04	Jul	-$0.013
SRW Wheat:	$7.13	-$0.10	-$0.17	Jul	$0.022
HRW Wheat:	$6.70	-$0.20	-$0.21	Jul	$0.002
HRS Wheat:	$7.34	-$0.05	-$0.31	Jul	-$0.002

CORN:

The national average corn basis for Wednesday is at 16 cents over the July futures, unchanged from Tuesday's basis. July corn closed down 7 1/2 cents Wednesday after USDA said there would be a larger-than-expected stockpile of corn in 2021-22. USDA's estimate came from 91.1 million planted acres and a yield of 179.5 bushels per acre (bpa) producing 15.07 billion bushels (bb) of corn. The market started out in a good mood after USDA said private exporters sold 30,000 metric tons (mt) of corn to Mexico for delivery during the 2020-21 marketing year and 70,000 mt for delivery during the 2021-22 marketing year. Weekly EIA data was somewhat bullish for the corn market as production rose and blending activity, a measure of demand, climbed 0.1% to reach the highest level since the week ended March 13, 2020. Plants are still grinding corn and with decent margins currently they will continue. Track PNW remains firm, while track St. Louis was 12 cents weaker. River basis tumbled as well on the news of the Lower Mississippi River closure late Tuesday afternoon after structure damage was discovered on a bridge in a routine inspection: https://www.dtnpf.com/…

SOYBEANS:

The national average soybean basis for Wednesday is at 4 cents over the July futures, 1 cent weaker than Tuesday's basis. July soybeans closed up 27 3/4 Wednesday, making a new high on the day. Higher soybean oil futures, up 1.6 cents, and continued concern over tight supplies were supportive to the market. The strength in the futures came early in the day ahead of the USDA report and actually pulled back a little after the report as it didn't have much in the way of bullish information. USDA left 2020-21 soybean ending stocks unchanged and 2021/22 ending stocks forecast at 140 million bushels (mb). Track PNW shuttle basis for September was 2 cents stronger, while bids were not quoted for track St. Louis. River basis was weaker after the closure of the Lower Mississippi River and the latest update by American Commercial Barge Line is that this has the potential to be a multi-day closure with major impact to the river system. Routine inspection found a significant breakdown to a load bearing structure. As of Wednesday morning, engineers and surveyors are on site making evaluations. Industry awaits further details on the longevity of this issue. Queue is currently 14 south-bound tows, 5 north-bound tows, as of 16:00 May 12. Other reports noted that at least 400 barges were stalled, and the number is growing.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 17 cents under the July futures, 2 cents stronger than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 21 cents under the Kansas City July futures, unchanged from Tuesday's basis. KC July wheat fizzled out, closing down 19 3/4 and not caring about the other wheat markets in the process. It certainly didn't help when USDA forecast winter wheat production at 1.28 bb, up 10% from 2020. USDA said as of May 1, the U.S. yield is forecast at 52.1 bpa, up 1.2 bushels from last year's average yield of 50.9 bpa, with HRW wheat production at 731 mb, up 11% from a year ago. At this stage of the game, we need to see what the end result will be given weather problems on and off this spring. Basis is steady and mills are still competing with the feed market, so nothing changed there.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 31 cents under the Minneapolis July futures, unchanged from Tuesday'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 unchanged at +120N, 14% proteins were down 5 cents at +110* to +115*, 14.5% proteins were down unchanged at +110N and 15% proteins were down 15 cents to unchanged at +110* to +150. Receipts were 95 cars, which included three 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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