CORN COMMENTS
The national average corn basis strengthened 2 1/4 cents to 2 cents below March futures. The national cash corn index price gained 1/4 cent from last Wednesday to $4.40. Strong corn exports have helped to keep basis close to average for this time of year despite expectations of a record or near-record crop this year.
National basis is firmer than the three-year average of 9 1/4 cents below futures.
SOYBEAN COMMENTS
The national average soybean basis firmed 2 3/4 cents to 13 1/2 cents below January futures. The national cash soybean index price is down 17 1/2 cents from last week at $10.77 3/4. While domestic crush is offering some support to cash prices, the lack of export demand is limiting the need for buyers to increase their bids and attract more soybeans.
National basis is slightly weaker than the three-year average of 7 1/2 cents below futures.
WHEAT COMMENTS
The national average soft red winter (SRW) wheat basis slipped 8 cents to 29 3/4 cents below March futures. The average cash price decreased 17 1/4 cents to $4.99 3/4. SRW basis continues to remain firmer than the three-year average of 49 3/4 cents under futures despite the widening this week. Wheat prices have come under sharp pressure as recent tones across the grain market turn slightly more bearish. A fresh WASDE report on Tuesday showing increased global supplies of wheat also limits price movements to the upside.
The national average hard red winter (HRW) wheat basis firmed 2 3/4 cents to 78 3/4 cents below March futures. The average cash price decreased 4 1/4 cents to $4.41 1/2. HRW basis continues to be weaker than the three-year average of 68 1/4 cents under futures. USDA’s Flour Milling report showed wheat ground for flour at 231 million bushels in the third quarter of this year, up 4% from the previous quarter but down 1% from the usage a year prior. The slight uptick in demand has not been enough to break wheat out from its current range of bids.
CATTLE COMMENTS
Cash cattle trade averaged $221.21 last week, up $9.68 from the previous week. Negotiations have been light to start the week, which is generally expected coming off a week where cash prices bounced higher. The little cash trade that has occurred saw prices average $222.00 on Monday. The higher value to start the week gives some optimism that more active trade later in the week will result in a steady to higher weekly average price.
Choice boxed beef fell $4.45 over the past week to $359.36 and have declined for six consecutive weeks now. The trend in declining prices has been steady and modest over that time, averaging a decline of $3.67 per week since the latest string of declines began. Last year at this time, choice boxed beef prices stood at $311.73.
HOG COMMENTS
The average lean hog carcass price gained $2.33 over the past week to $71.69. Last year’s lean carcass price on this date was $85.97. The seasonal weakening that began months ago seems to have given way, as cash fundamentals begin to firm amid support from expected holiday demand. The CME lean hog index is currently at $81.89. The index has notched modest gains since the start of December, another signal of seasonal weakness in hogs coming to a close.
The pork cutout value gained $3.25 over the past week to $97.27. Cutout values will also look to climb with carcasses gaining value at the same time. Pork continues to remain a value protein to consumers relative to beef. Last year at this time, the cutout price stood at $93.14.