CORN COMMENTS
The national average corn basis gained 3 1/2 cents to 1/4 cent above December futures. The national cash corn index price fell 13 3/4 cents from last Wednesday to $4.15 3/4. Corn prices look to see a generally slow grind higher in the coming months as we move to the period of the year after U.S. harvest but before South America starts their own harvest season.
National basis is only slightly firmer than the three-year average of 2 3/4 cents below futures.
SOYBEAN COMMENTS
The national average soybean basis firmed 3/4 of a cent to 18 cents below January futures. The national cash soybean index price saw modest losses this week, down 22 1/2 cents to $10.95, although still above the price from two weeks prior. Prices in the soybean market have been slightly less volatile this week, although headlines are still a big driver in shifting market sentiment.
National basis is weaker than the three-year average of 8 1/2 cents below futures.
WHEAT COMMENTS
The national average soft red winter (SRW) wheat basis firmed 6 1/4 cents to 24 3/4 cents below March futures. The average cash price increased 9 cents to $5.15 1/4. SRW basis continues to remain firmer than the three-year average of 45 3/4 cents under futures. Wheat prices saw modest gains from last week, as reports from USDA continue to show strong exports occurred in the month of October, lifting at least some of the burden of high supplies.
The national average hard red winter (HRW) wheat basis slipped 12 3/4 cents to 85 cents below March futures. The average cash price increased 2 1/2 cents to $4.44 3/4. HRW basis continues to be weaker than the three-year average of 66 1/2 cents under futures. Cash bids have traded mostly sideways since late October on average.
CATTLE COMMENTS
Cash cattle trade averaged $217.41 last week, down $7.65 from the previous week. Cash negotiations so far this week have been light, with prices mostly in the $208 to $210 range. The week-to-week declines in values of cash negotiations have been sizable each week over the last month, suggesting the trend may continue in the short-term.
Choice boxed beef fell $2.95 over the past week to $368.28 and have declined for four consecutive weeks now. Last year at this time, choice boxed beef prices stood at $311.57. The modest declines in boxed beef have not been as sharp as the declines in cattle prices, but the downtrend is still occurring.
HOG COMMENTS
The average lean hog carcass price fell $5.63 over the past week to $70.92. Last year’s lean carcass price on this date was $83.72. Cash prices continue to erode and are being pressured by the bearish sentiments in the cattle markets. The CME lean hog index is now down to $82.81. The rate of decline in the index has jumped lately, with daily decreases as high as $1.20 over the last week.
The pork cutout value rose $1.11 over the past week to $94.25, with picnics leading the gains. Last year at this time, the cutout price stood at $91.15.