CORN COMMENTS
The national average corn basis gained 2 cents to 3 1/4 cents below December futures. The national cash corn index price fell 2 1/4 cents from last Wednesday to $4.28 3/4. Cash prices in corn are receiving support from continued strong demand, in both foreign and domestic markets, preventing drastic decreases despite a volatile futures market.
National basis is only slightly weaker than the three-year average of 2 3/4 cents below futures.
SOYBEAN COMMENTS
The national average soybean basis firmed 1 3/4 cents to 18 3/4 cents below January futures. The national cash soybean index price notched another week of gains, up 24 1/4 cents to $11.17 1/2. Prices in the soybean market remain active, with volatility high in cash and futures markets.
National basis is weaker than the three-year average of 8 1/2 cents below futures. Basis remains highly variable among regions. Assuming Chinese demand continues, basis in the Dakota’s should look to improve.
WHEAT COMMENTS
The national average soft red winter (SRW) wheat basis slipped 2 3/4 cents to 30 cents below December futures. The average cash price decreased 2 1/2 cents to $5.06 1/4. SRW basis continues to remain firmer than the three-year average of 46 3/4 cents under futures. Cash prices are beginning to wane across most of the U.S., likely feeling pressure from the continued lack of weather threats to production around the globe.
The national average hard red winter (HRW) wheat basis firmed 1 3/4 cents to 72 1/4 cents below December futures. The average cash price fell 7 3/4 cents to $4.42 1/4. HRW basis continues to be weaker than the three-year average of 61 1/2 cents under futures but has seen small improvement over the last month. HRW cash prices continue to be pressured by a need to remain inexpensive compared to foreign grains to remain competitive.
CATTLE COMMENTS
Cash cattle trade averaged $225.06 last week, down $3.64 from the previous week. Cattle trading has been mostly light so far this week, which is expected ahead of USDA’s Cattle on Feed report to be released this Friday. Cash negotiations so far this week have been in the $221 to $224 area, signaling once again that a weekly decline in cash values is possible.
Choice boxed beef fell $3.22 over the past week to $371.23 and have declined for three consecutive weeks now. Last year at this time, choice boxed beef prices stood at $308.79.
HOG COMMENTS
The average lean hog carcass price fell a sizable $7.21 over the past week to $76.55. Last year’s lean carcass price on this date was $85.84. Cash prices continue their seasonal downtrend once again this week. The CME lean hog index is now down to $86.67. The rate of decline has shown more variation lately, with daily decreases as small as 3 cents and as large as 94 cents over the last week.
The pork cutout value fell $3.00 over the past week to $93.14. Last year at this time, the cutout price stood at $94.68. Cutout values are seeing pressured by similar boxed beef also seeing declines, as well as decreasing carcass prices.