CORN COMMENTS
The national average corn basis gained 2 1/4 cents to 5 cents below December futures. The national cash corn index price also gained 2 1/4 cents from last Wednesday to $4.30 1/4. A deal to re-open the U.S. government is currently scheduled for today. A resumption of export sales data upon re-opening will give cash markets more data to trade on.
National basis is only slightly firmer than the three-year average of 5 1/4 cents below futures.
SOYBEAN COMMENTS
The national average soybean basis slipped 1 3/4 cents to 20 1/2 cents below January futures. The national cash soybean index price notched another week of gains, although it was a modest increase of 3 cents from last Wednesday to $10.92.
National basis is moderately weaker than the three-year average of 11 1/4 cents below futures. Basis has been particularly active in the Dakota’s again this week, with changes being driven by the uncertainty of continued Chinese purchases.
WHEAT COMMENTS
The national average soft red winter (SRW) wheat basis gained13 3/4 cents to 27 1/4 cents below December futures. The average cash price decreased 4 1/4 cents to $5.08 3/4. SRW basis continues to remain firmer than the three-year average of 45 1/4 cents under futures. Cash prices in wheat slipped this week after four consecutive weeks of modest gains. Doubts on Chinese demand for U.S. grains are likely causing some decrease in buying interest. Harvest beginning in portions of South America is also likely causing some pressure on prices in the international markets.
The national average hard red winter (HRW) wheat basis firmed 3 cents to 74 cents below December futures. The average cash price fell 12 cents to $4.51. HRW basis continues to be weaker than the three-year average of 61 1/2 cents under futures, but has seen minor strengthening over the last three weeks. HRW cash prices continue to be pressured by ample supplies being available.
CATTLE COMMENTS
Cash cattle trade averaged $228.70 last week, down $2.16 from the previous week. Cattle trading has been mostly light so far this week, but has set the stage for another potential decline in the upcoming weekly average price as well.
Choice boxed beef fell $3.81 over the past week to $374.45 but still remains above October level prices. Last year at this time, choice boxed beef prices stood at $308.27.
HOG COMMENTS
The average lean hog carcass price fell 94 cents over the past week to $83.76. Last year’s lean carcass price on this date was $84.01. Cash prices continue their seasonal downtrend again this week. The CME lean hog index is now down to $89.17, although the daily declines have gotten slightly smaller this week. Weakening cash prices in the cattle trade are also limiting any momentum for hogs.
The pork cutout value fell $1.40 over the past week to $96.14. Last year at this time, the cutout price stood at $97.68. Cutout values are also pressured by declines in boxed beef.