CORN COMMENTS
The national average corn basis gained 1 1/2 cents to 8 1/4 cents below December futures. The national cash corn index price fell 1 1/4 cents from last Wednesday to $4.25 3/4. Corn demand has been boosted by the forecast for record ethanol exports in the U.S. this year per the EIA.
National basis is slightly firmer than the three-year average of 13 1/4 cents below futures. As the harvest season wraps up, seasonal strengthening of basis is likely in the coming months.
SOYBEAN COMMENTS
The national average soybean basis gained 15 3/4 cents to 1 3/4 cents above January futures. The national cash soybean index price gained an impressive 52 cents from last Wednesday to $10.45.
National basis has now turned stronger than the three-year average of 3 1/2 cents below futures. Basis had been seeing slight improvements over the past few weeks but really saw strength after the announcement that China had purchased U.S. soybeans. Some locations in the Dakota’s recorded a nearly 40-cent improvement within a day of the news.
WHEAT COMMENTS
The national average soft red winter (SRW) wheat basis slipped 6 1/4 cents to 41 1/2 cents below December futures. The average cash price increased 32 1/2 cents to $4.90 1/2. SRW basis continues to remain firmer than the three-year average of 60 1/2 cents under futures. After falling most of September, cash prices have seen modest increases for three consecutive weeks now. Wheat is benefiting from the more positive tones across the grains complex this week.
The national average hard red winter (HRW) wheat basis gained 14 cents to 78 1/2 cents below December futures. The average cash price increased 48 cents to $4.42. HRW basis continues to be weaker than the three-year average of 65 1/4 cents under futures, but that gap has narrowed significantly this week. This substantial increase in HRW cash prices can likely be attributed to continued demand for exports, as well as positive price action in corn and other grains.
CATTLE COMMENTS
Cash cattle trade averaged $237.89 last week, down $1.93 from the previous week. Cattle trading was surprisingly active early this week, with negotiations already occurring. Lately most trading has waited until Thursday or Friday to materialize. Movement is likely caused by the higher volatility in the cattle markets as of late, with producers looking to secure prices amid the bull markets coming under pressure.
Choice boxed beef gained $10.73 over the past week to $381.38, demonstrating strong demand for beef at the consumer level. Last year at this time, choice boxed beef prices stood at $320.61.
HOG COMMENTS
The average lean hog carcass price fell $1.59 over the past week to $87.90. Last year’s lean carcass price on this date was $75.95. Cash prices for hogs continue to decline as seasonal strength weakens. The CME lean hog index dropped again today, and has generally followed a steady downward trend since early October.
The pork cutout value gained 49 cents over the past week to $100.24. Last year at this time, the cutout price stood at $101.07. As inflation among food continues to persist, pork will likely hold its perception as a bargain protein to consumers.