CORN COMMENTS
The national average corn basis gained 1 1/4 cents to 7 1/4 cents below December futures. The national cash corn index price gained 2 1/4 cents from last Wednesday to $4.28. Corn exports continue to remain strong. The markets will receive more information on expectations of the size of the corn crop in next week’s WASDE report.
National basis is slightly firmer than the three-year average of 8 1/4 cents below futures. As we begin to move away from the bulk of harvest basis should begin to improve for most locations.
SOYBEAN COMMENTS
The national average soybean basis slipped 19 3/4 cents to 18 3/4 cents below January futures. The national cash soybean index price notched another solid week, gaining 44 cents from last Wednesday to $10.89. Volatility in the soybean markets is high at this time. Tones are generally positive due to the negotiation of a deal with China, but soybeans have shown they are not immune to occasional pullbacks.
National basis is once again slightly weaker than the three-year average of 14 1/4 cents below futures.
WHEAT COMMENTS
The national average soft red winter (SRW) wheat basis gained 1/2 a cent to 41 cents below December futures. The average cash price increased 23 1/2 cents to $5.13. SRW basis continues to remain firmer than the three-year average of 55 1/4 cents under futures. After falling most of September, cash prices have seen modest increases for four consecutive weeks now. Rumors of Chinese interest in purchasing wheat for delivery early next year are lifting cash and futures markets at this time.
The national average hard red winter (HRW) wheat basis gained 1 1/2 cents to 77 cents below December futures. The average cash price increased 19 cents to $4.63. HRW basis continues to be weaker than the three-year average of 65 cents under futures, but has made minor gains for two weeks now. HRW is still at the lower-end of its price range, meaning exports are likely to continue to remain strong as it is competitive to foreign buyers.
CATTLE COMMENTS
Cash cattle trade averaged $230.86 last week, down $7.03 from the previous week. Cattle trading has been extremely light in the cash market so far this week, setting up another week of negotiations occurring mostly on Thursday and Friday. Another limit down day in futures is likely causing pause among negotiators to settle deals early in the week.
Choice boxed beef fell $3.12 over the past week to $378.26, but still remains above the lower prices seen in October. Last year at this time, choice boxed beef prices stood at $317.21.
HOG COMMENTS
The average lean hog carcass price fell $3.20 over the past week to $84.70. Last year’s lean carcass price on this date was $84.51. Cash prices for hogs continue to decline as seasonal strength weakens. The CME lean hog index dropped again today and has not had a day of positive gains since September 25th of this year. Holiday demand will be much needed to give cash markets a lift.
The pork cutout value fell $2.70 over the past week to $97.54. Last year at this time, the cutout price stood at $101.43.