DTN Daily Basis Comments

Monday 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 74 cents over the September futures contract while the DTN National Corn Index was down 11 cents at $6.21. The national average basis for soybeans was unchanged at 30 cents over the November futures contract and the DTN National Soybean Index was down 28 cents at $13.79. 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 down 1 cent at $6.57. The national average basis for HRS wheat was unchanged at 15 cents under the September futures contract and the DTN National Hard Red Spring Wheat Index was down 13 cents at $8.90.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $6.21 -$0.11 $0.74 Sep $0.000
Soybeans: $13.79 -$0.28 $0.30 Nov $0.004
SRW Wheat: $6.61 -$0.01 -$0.43 Sep $0.006
HRW Wheat: $6.57 -$0.01 -$0.16 Sep $0.002
HRS Wheat: $8.90 -$0.13 -$0.15 Sep $0.005

CORN:

The national average corn basis for Friday is at 74 cents over the September futures, unchanged from Thursday's basis. September corn closed down 11 cents Friday, as the market took note of improved weather prospects. Rain showed up in South Dakota and southwestern Minnesota on Friday's weather map, eventually heading through Iowa and into Illinois by Saturday. For the week, September corn was down 1/4 cent and December corn was up 2 1/4 cents. As July ended, so did the sharply higher Gulf basis, but August basis still remains a 33-cent bid to 52-cent offer premium to September. Barge freight remains active nearby, with new-crop values starting to draw some interest. Track PNW shuttle basis is flat at +115Z first half November and +128Z last half.

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SOYBEAN:

The national average soybean basis for Friday is at 30 cents over the November futures, unchanged from Thursday's basis. November soybeans had a rough day Friday, closing down 28 1/2 cents, following the same weather pattern mentioned in corn comments. However, we will need to see more coverage in the northwestern Corn Belt and the 14-day forecast does not show much promise for moisture there. For the week, September soybeans ended down 1/4 cent and November soybeans were down 2 1/2 cents. August soybean oil was down 1.11 cent and September was down 1.80, adding pressure to the soybean market as well. Track PNW shuttle basis was unchanged at +150X for September, while track St. Louis was unchanged. Processor basis has seemed to level off and the inverse from spot to full month has disappeared.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Friday is at 43 cents under the September futures, unchanged from Thursday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Friday is at 16 cents under the Kansas City September futures, unchanged from Thursday's basis. KC September closed down 1 1/2 cents and for the week, KC wheat closed up 27 1/4 cents, September Chicago wheat was up 19 3/4 cents. U.S. Wheat Associates noted in their weekly harvest report that the HRW fields left to harvest are drought stressed at best. "Across the entire production region, farmer thoughts are turning to planting and, except for Texas, Oklahoma and areas of Kansas, rain will be needed to generate sufficient soil moisture for the next crop." Of the 411 HRW wheat samples tested, protein increased this week to 11.6 with samples from drier areas, while test weight was down slightly at 60.6 pounds but still a #1 grade.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Friday is at 15 cents under the Minneapolis September futures, unchanged from Thursday's basis. For the week, September Minneapolis wheat futures finished up 21 1/4 cents a bushel. 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 at +140, 14% proteins were unchanged at +150; 14.5% proteins were unchanged at +125; 15% proteins were unchanged to up 35 cents at +135 to +170 and 17% protein was at +105. 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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Mary Kennedy

Mary Kennedy
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