DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 2 cents weaker at 77 cents over the September futures contract while the DTN National Corn Index was up 15 cents at $6.45. The national average basis for soybeans was 4 cents stronger at 57 cents over the November futures contract while the DTN National Soybean Index was up 9 cents at $14.41. The national average basis for HRW wheat was 1 cent weaker at 20 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was up 16 cents at $6.08. The national average basis for HRS wheat was unchanged at 26 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was up 11 cents at $8.47.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$6.45	$0.15	$0.77	Sep	-$0.016
Soybeans:	$14.41	$0.36	$0.57	Nov	$0.046
SRW Wheat:	$6.19	$0.18	-$0.35	Sep	-$0.024
HRW Wheat:	$6.08	$0.16	-$0.20	Sep	-$0.001
HRS Wheat:	$8.47	$0.11	-$0.26	Sep	$0.002

CORN:

The national average corn basis for Wednesday is at 77 cents over the September futures 2 cents weaker than Tuesday's basis. The September corn market closed up 15 cents Wednesday and December closed up 18 cents, even as rains fell in dry southern Minnesota and into Wisconsin, coming through parts of dry South Dakota and Iowa. However, it wasn't evenly spread out in those areas and some farmers on social media show nearly empty rain gauges. The Northern Plains and Upper Midwest will return to the 90s and some triple-digit temperature readings without much rain showing in the forecast after Wednesday. Wednesday's EIA report was flat for corn demand, but plants still need to keep grinding even if it is at a slower pace, especially given the ongoing demand for ethanol. July CIF NOLA basis was 15 cents stronger Wednesday afternoon, while track St. Louis basis was 2 cents stronger. Ethanol plant basis has been a mixed bag, with a plant in east-central Iowa 15 cents stronger, while a plant in central Iowa was 30 cents weaker. Plant margins remain strong, but some plants either have enough old crop on the books for now or are doing summer maintenance.

SOYBEAN:

The national average soybean basis for Wednesday is at 57 cents over the November futures, 4 cents stronger than Tuesday's basis. August soybeans closed up 38 1/4 cents Wednesday, while November beans closed up 31 1/4 cents as the market is concerned that the upcoming heat on top of dry weather could stress the soybean crop. Soybean oil was up 0.68 cents, but meal had a strong close, up $12.20 in August. The higher prices in palm oil are also supportive as that market is also looking at a tight supply situation. The markets will continue to react to weather forecasts, especially in the drought areas of the Midwest. CIF NOLA basis was 4 cents stronger for July and August, while river basis is steady to lower. There is nothing much going on with barge freight on the bid or offer side, but there has been some action in the St. Louis market. Processors basis continues to be mixed with wide ranges in basis moves as we are seeing some fresh moves from them now moving from the August to November. The story is the same in that plants needing beans will pay up for spot purchase.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 35 cents under the September futures, 2 cents weaker than Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 20 cents under the Kansas City September futures, 1 cent weaker than Tuesday's basis. KC September closed up 16 cents, with support from higher corn and soybean markets as well as a weak USD. Also supportive is the strength in Paris milling futures as rains in France and Germany are creating concerns that new-crop quality may be negatively affected. Cash bids remain firm at most elevators, but the KC spot market is still weakening for sub-12% protein currently.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 26 cents under the Minneapolis September futures, unchanged from Tuesday's basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis September futures contract for No. 1 milling quality: 12% proteins were not quoted, 13% proteins were not quoted, 13.5% proteins were up 25 cents at +140*, 14% proteins were unchanged to up 20 cents at +130N to +160; 14.5% proteins were unchanged to up 5 cents at +130N to +140 and 15% proteins were unchanged to down 20 cents at +140N to +150. Receipts were 33 cars, which included one 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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