DTN Daily Basis Comments

Thursday Morning Basis Update

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 7 cents over the July futures contract while the DTN National Corn Index was up 7 cents at $6.80. The national average basis for soybeans was 3 cents weaker at 35 cents under the July futures contract while the DTN National Soybean Index was down 35 cents at $14.14. The national average basis for HRW wheat was unchanged at 15 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was down 2 cents at $5.96. 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 up 11 cents at $7.29.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $6.80 $0.05 $0.07 Jul -$0.003
Soybeans: $14.14 -$0.20 -$0.35 Jul -$0.030
SRW Wheat: $6.40 $0.01 -$0.23 Jul -$0.005
HRW Wheat: $5.96 -$0.02 -$0.15 Jul $0.000
HRS Wheat: $7.29 $0.11 -$0.31 Jul -$0.010

CORN:

The national average corn basis for Wednesday is at 7 cents over the July futures, unchanged from Tuesday's basis. July corn closed up 5 1/2 cents and December corn closed down 1 1/4 cents after trading up 12 cents. Early this morning USDA reported that private exporters sold of 153,416 metric tons of corn delivery to unknown destinations during the 2021-22 marketing year, but weather continues to dictate the market. While the U.S. currently looks hot and dry, there is a good coverage of moderate rain amounts in the seven-day forecast headed for the Eastern Corn Belt, which includes Iowa and southern Minnesota, if amounts verify. The EIA report showed that corn demand at plants still exists even as production fell slightly last week. Plants continue to grind old-crop corn as demand for ethanol remains strong. There is nothing happening with shuttle basis on the PNW and bids are still only for LH November forward. June CIF NOLA basis was 1 cent weaker while July was 2 cents weaker. Track St. Louis Basis was 4 cents weaker and Illinois River basis was 10 cents weaker. Secondary shuttle freight is bid and offered under tariff through August and October freight is weaker with bids at $450 per car over tariff against offers of $800 over.

SOYBEANS:

The national average soybean basis for Wednesday is at 35 cents under the July futures, 3 cents weaker than Tuesday's basis. July soybeans closed down 17 1/4 cents, while November lost 30 1/4 cents. The culprit of the day was the limit down close in soybean oil in July through December contracts. Soybean oil has been falling apart since the concern news that refiners may be given a lower blending mandate after RINs became more expensive this year. That caused biomass diesel RINs to lose about 52 cents from one week ago. The White House has announced they will release preliminary 2021 and 2022 RFS blending mandates in July, adding to the uncertainty in the market. Another bearish sign was on Tuesday when the National Oilseed Processors Association (NOPA) reporting a May crush of 163.5 million bushels, lower than the average trade estimates. Processors bids were steady to weaker with in southern Minnesota down 5 to down 10 cents and central Nebraska down 10 cents, while PNW track soybean shuttle basis was down 2 cents for September forward. Track St. Louis basis was 1 cent weaker and CIF NOLA basis was steady. There is still nothing going on with barge freight nearby and offers for new crop slots have started to work lower.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 23 cents under the July futures, unchanged from Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 15 cents under the Kansas City July futures, unchanged from Tuesday's basis. KC July closed down 15 1/4 cents as wheat harvest is moving along into Kansas and expected to be in central Kansas in the next few days. It is likely that farmers will sell their new crop off the combine, adding more pressure to the market. Talk of early low protein new crop already moving into the poultry feed channels. Mills are still keenly watching for any sign of better proteins.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 31 cents under the Minneapolis July futures, 1 cent weaker than 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 not quoted, 14% proteins were up 30 to up 20 cents at +130; 14.5% proteins were up 10 cents at +100 and 15% proteins were at +165. Receipts were 6 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

Mary Kennedy

Mary Kennedy
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