DTN Daily Basis Comments

DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was unchanged at 74 cents over the September futures contract while the DTN National Corn Index was up 1 cent at $6.23. The national average basis for soybeans was 1 cent stronger at 35 cents over the November futures contract and the DTN National Soybean Index was up 3 cents at $13.96. The national average basis for HRW wheat was unchanged at 16 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was up 18 cents at $6.43. The national average basis for HRS wheat was 1 cent stronger at 16 cents under the September futures contract and the DTN National Hard Red Spring Wheat Index was up 26 cents at $8.87.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$6.23	$0.01	$0.74	Sep	$0.004
Soybeans:	$13.96	$0.03	$0.35	Nov	$0.017
SRW Wheat:	$6.46	$0.13	-$0.43	Sep	-$0.016
HRW Wheat:	$6.43	$0.18	-$0.16	Sep	$0.001
HRS Wheat:	$8.87	$0.26	-$0.16	Sep	$0.004

CORN:

The national average corn basis for Wednesday is at 74 cents over the September futures, unchanged from Tuesday's basis. September corn closed up 1/2 Wednesday and December closed up 2 3/4 cents, closing slightly higher as DTN weather forecast is for hot weather to continue but to be followed by a cold front moving through the Northern Plains and Upper Midwest, sending temperatures closer to normal on Thursday. This front is also expected to produce some strong to severe thunderstorms across the Upper Midwest that could be damaging to crops and will be watched closely as it approaches. As far as other factors affecting the market, our demand picture for the rest of this crop year looks light and that has been apparent in poor weekly inspections. Late-fall commitments so far look decent on the PNW, but no new demand is seen before November. Track PNW shuttle basis is still flat for November forward, but track St. Louis was 2 cents stronger. There is some nearby interest in barges and nearby barge bids are strong, but nothing seems to be trading. River bids are firm for nearby as well and then drop off as we hit August. We are seeing strong basis bids in the Eastern Corn Belt versus the Western Corn belt right now.

SOYBEAN:

The national average soybean basis for Wednesday is at 35 cents over the November futures, 1 cent stronger than Tuesday's basis. November soybeans closed up 1 1/2 cents Wednesday as the market remains concerned over impacts on the new crop in areas where it's been hot and dry with no rain. One good thing is the heat seems to be waning and most of the U.S. is returning to mid-80s or lower and cooler nights. September soybean oil was up 0.54 cent as palm oil has been trading higher. Markets are also keeping a close on August weather as soybeans enter a crucial growing stage. Basis is quiet on the PNW and at the Gulf, while processors continue to be the market movers for now. Still seeing spot basis higher and then a steep drop for August and processors will keep that up until they get what they need to crush.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 43 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 16 cents under the Kansas City September futures, unchanged from Tuesday's basis. The KC September closed up 18 cents on the heels of strength in Minneapolis spring wheat futures, which closed up 25 cents. Some of that strength was from the sub-30 bushels per acre yield found by the spring wheat tour -- one of the lowest estimates seen for a Day 1. The final results will be tallied on Thursday, July 29. There is fresh talk again that China is looking to buy U.S. hard red winter wheat. Milling basis keeps surging higher, especially for 13% and better proteins.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 16 cents under the Minneapolis September futures, 1 cent stronger than 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 not quoted, 14% proteins were unchanged at +125 to +150; 14.5% proteins were unchanged at +135 and 15% proteins were down 15 cents to unchanged at +120 to +170. Receipts were 19 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

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