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 2 cents weaker at 52 cents over the September futures contract, while the DTN National Corn Index was up 2 cents at $6.67. The national average basis for soybeans was unchanged at 47 cents over the November futures contract while the DTN National Soybean Index was up 9 cents at $14.37. The national average basis for hard red winter (HRW) wheat was 1 cent stronger at 47 cents under the September futures contract while the DTN National Hard Red Winter Wheat Index was down 20 cents at $8.06. The national average basis for hard red spring (HRS) wheat was unchanged at 49 cents under the September futures contract while the DTN National Hard Red Spring Wheat Index was down 19 cents at $8.34.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $6.67 $0.02 $0.52 Sep -$0.016
Soybeans: $14.37 $0.09 $0.47 Nov $0.003
SRW Wheat: $7.08 -$0.23 -$0.55 Sep $0.000
HRW Wheat: $8.06 -$0.20 -$0.45 Sep $0.009
HRS Wheat: $8.34 -$0.19 -$0.49 Sep -$0.001

CORN:

The national average corn basis for Wednesday is 52 cents over the September futures, 2 cents weaker than Tuesday's basis. Track PNW basis for November is still steady at +160U and December is steady at +168Z. CIF NOLA for first-half August is steady at +106U to +108U, while track St. Louis is 5 cents weaker at +63U for first-half August. BNSF secondary shuttle freight for returns is no bid against offers of $100 under, while August is no bid against offers of $200 under. September is bid +600 over against offers of $1200 over and new-crop October is bid at $1800 over against offers of $2250 over. UP secondary freight is no bid for August against offers of $100 over, September is bid $200 over against offers of $700 and October is bid $1800 against no offers. The weakness seen in the corn basis is mostly in the domestic market right now, which is interesting given the flat price is about 20 cents lower than last Friday. But ethanol plants have slowed production and that means less demand for cash corn.

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SOYBEANS:

The national average soybean basis for Wednesday is at 47 cents over the November futures, unchanged from Tuesday's basis. Track PNW basis for August is steady at +250X, first-half September at +250X and last-half September is steady at +235X. CIF NOLA basis for this week August is steady at +240X, with one exporter raising his bid to +285X and track St. Louis is at +170X for August and then drops to +60X for September. Barge freight is still quiet with talk that barges are hard to find in the corridor north of St. Louis. The demand for cash soybeans is obviously at the Gulf right now but processors are still in the market given the strong crush margins.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Wednesday is at 55 cents under the September futures, unchanged from Tuesday's basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Wednesday is at 45 cents under the Kansas City September futures, 1 cent stronger than Tuesday's basis. The KC spot protein premiums for ords through 14% were down 5 cents at +165U and we are back to "wheat is wheat" when it comes to protein values. Iraq backed out of the tender for U.S. wheat, citing high prices, but given the losses in the futures now, we may get more competitive.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Wednesday is at 49 cents under the Minneapolis September futures, unchanged from Tuesday'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 not quoted, 13.5% proteins were not quoted, 14% proteins were unchanged at +125N to +180, 14.5% proteins unchanged at +130N, 15% proteins were unchanged at +130* to +200, and 16% proteins were not quoted. Wheat receipts on the exchange floor were 85 cars, which included three 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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