DTN Daily Basis Comments

Wednesday 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 3 cents stronger at 89 cents over the September futures contract, while the DTN National Corn Index was down 24 cents at $6.81. The national average basis for soybeans was 3 cents weaker at 26 cents over the August futures contract while the DTN National Soybean Index was down 73 cents at $14.65. The national average basis for hard red winter (HRW) wheat was 8 cents stronger at 50 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was down 44 cents at $8.12. The national average basis for hard red spring (HRS) wheat was 6 cents stronger at 43 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was down 53 cents at $8.47.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $6.81 -$0.24 $0.89 Sep $0.030
Soybeans: $14.65 -$0.73 $0.26 Aug -$0.025
SRW Wheat: $7.42 -$0.41 -$0.65 Sep -$0.024
HRW Wheat: $8.12 -$0.44 -$0.50 Sep $0.075
HRS Wheat: $8.47 -$0.53 -$0.43 Sep $0.053

CORN:

The national average corn basis for Tuesday is 89 cents over the September futures, 3 cents stronger than Friday's basis. There are still no bids posted for PNW basis until November at +150Z, while CIF NOLA for July was bid at +77N. Basis has been picking up in the country with posted bids running 5 to 10 cents in Iowa and parts of Nebraska. Ethanol plants are still in the hunt for old crop corn and are willing to pay up, especially given the losses in the futures.

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SOYBEANS:

The national average soybean basis for Tuesday is at 26 cents over the August futures, 3 cents weaker than Friday's basis. Track PNW new crop basis for September is 5 cents weaker at +215X and October is 15 cents weaker at +200X. CIF NOLA basis is steady at 75N for July, while track St. Louis is 6 cents stronger for July at +24N. Barge freight saw some action in the nearby slots on the Illinois River and at St. Louis. Given that water levels have dropped further in the Lower Mississippi River, American Commercial Barge Line said that "The industry aligned on July 5 to reduce SBD drafts St. Louis through the Gulf to 11 feet and Rosedale through the Gulf to 11 feet, 6 inches. NBD drafts reduced to 10 feet, 6 inches. In conjunction, tows are restricted to 7-widths and depending on horsepower, this is resulting in a 12%-15% reduction in tow size."

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Tuesday is at 65 cents under the September futures, 2 cents weaker than Friday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Tuesday is at 50 cents under the Kansas City September futures, 8 cents stronger than Friday's basis. There was a large count of cars on the KC spot market Tuesday and so far all protein premiums are at +180U but we could see weaker values later Wednesday. Weekly export inspections were dismal and to add to the pressure on the wheat markets was a bearish Stats Canada report that was above what the trade expected. The market is lifeless right now and given that new crop winter wheat yield reports are good so far and no export business, it could stay that way.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Tuesday is at 43 cents under the Minneapolis September futures, 6 cents stronger than Friday's basis. The Minneapolis spot spring wheat cash premiums closed as follows, based on Minneapolis September futures: 12% proteins were not quoted, 13% proteins were unchanged at +140N, 13.5% proteins were not quoted, 14% proteins were unchanged at +105N to +180N, 14.5% proteins were not quoted, 15% proteins were down 10 cents to unchanged at +150A* to +200 and 16 proteins were not quoted. Wheat receipts on the exchange floor were 28 cars, which included one train(s).* MGEX Daily Grain Prices are Delivered Chicago/Beyond: Spot No. 1 Milling Northern/Dark Northern Spring Wheat.

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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