CORN COMMENTS
The national average corn basis slipped 4 1/4 cents to 4 cents below March futures. The national cash corn index price gained 19 1/4 cents from last Wednesday to $4.39 3/4. Corn prices have been supported by strong ethanol demand and continued interest in U.S. grain for the export market.
National basis is nearly in line with the three-year average of 4 3/4 cents below futures.
SOYBEAN COMMENTS
The national average soybean basis firmed 2 3/4 cents to 16 1/4 cents below January futures. The national cash soybean index price is unchanged from last week at $10.95. The cash soybean markets were less volatile between now and the holiday, but are likely to see some of that volatility return in the coming weeks as activity picks up.
National basis is weaker than the three-year average of 8 cents below futures.
WHEAT COMMENTS
The national average soft red winter (SRW) wheat basis firmed 3 1/4 cents to 21 3/4 cents below March futures. The average cash price increased 1 1/4 cents to $5.16 1/2. SRW basis continues to remain firmer than the three-year average of 46 3/4 cents under futures. Wheat prices saw a small uptick this week amid continued news of uncertainty regarding peace in the Black Sea region.
The national average hard red winter (HRW) wheat basis firmed 3 1/2 cents to 81 1/2 cents below March futures. The average cash price also increased 3 1/2 cents to $4.48 1/2. HRW basis continues to be weaker than the three-year average of 65 1/4 cents under futures. Cash bids are still down from the early November high of $4.63, but have been slowly grinding higher the past few weeks.
CATTLE COMMENTS
Cash cattle trade averaged $211.53 last week, down $5.88 from the previous week. Cattle trading has been light so far this week. Reports have shown cash prices for steers as high as $218, up substantially from last week’s average. While higher prices are a welcome sign in the cash markets, those support levels will be tested as trade picks up later in the week. The low volume of trade on Monday especially limits confidence in cash prices strongly reversing the downward trend.
Choice boxed beef fell $4.47 over the past week to $363.81 and has now declined for five consecutive weeks now. Despite the weekly declines from the early September highs, prices remain elevated from the previous year. Last year at this time, choice boxed beef prices stood at $310.83.
HOG COMMENTS
The average lean hog carcass price fell $1.56 over the past week to $69.36. Last year’s lean carcass price on this date was $86.20. Cash prices continue to fade, but have some signs of potential improvement in the near term. The CME lean hog index is currently at $81.61. The daily decreases in the index continue, but are much lower this week than they have been previously. Seasonal weakening may be beginning to give way in the cash hog markets.
The pork cutout value fell 23 cents over the past week to $94.25. Cutout values have also shown slower rates of decline in recent weeks, moving in tandem with carcass prices. Last year at this time, the cutout price stood at $89.61.