TFM Midday Update 8-6-20

CORN

September up 0.0025 @ 3.1125, December down 0.0025 @ 3.23, March down 0.0075 @ 3.3475
Ethanol production for the week ending July 31 was down 2.8% from the previous wee and down 10.5% from the same week last year
Dryness in Iowa is a growing concern but 6-10 day forecasts are showing above-normal precipitation for the entire state
The US sold 101,600 tonnes of corn for the week ending July 30, down sharply from last week and down 70% from the previous 4-week average
December futures are still trading within Tuesday’s range
Oversold stochastics

August down 0.0175 @ 8.8025, September down 0.0075 @ 8.755, November unchanged @ 8.7875
Dry areas in Iowa are forecast to see rain soon
Strong demand from China lately
Dollar stabilizing near recent lows
US sold 345,200 tonnes of beans for the week ending July 30, up 72% from last week but down 22% from the previous 4-week average
Soybean oil futures made hook reversals lower this week
Meal futures are close to contract lows
November beans tested their 50-day moving average resistance this morning but could not break through

September CHI down 0.065 @ 5.0425, September KC down 0.095 @ 4.17, September MPLS down 0.0475 @ 4.9675
US dollar is higher today and the trend lower may be ending
Egypt bought wheat this week from Ukraine and Russia
Wheat production in Canada is expected to be 16% higher than last year
US sold 605,500 tonnes of wheat for the week ending July 30, down 11% from last week but up 2% from the previous 4-week average
CHI futures tested the 50-day moving average resistance level and are now making a bearish outside session
KC and MPLS futures are extending the recent downtrend to new contract lows

August lives up 0.30 @ 102.60, October lives down 0.17 @ 107.27, December lives down 0.45 @ 111.20
August feeders down 0.52 @ 144.27, September feeders up 0.12 @ 146.60
Cash cattle prices are trending higher, beef values have been choppy to lower so far this week
Lower slaughter this week is helping to keep supply from overwhelming softer August demand
October lives have again tested and held their 200-day moving average support level
October lives traded at their highest level this morning since early March

August up 0.20 @ 49.65, October down 0.17 @ 49.12, December down 0.02 @ 51.45
The CME Lean Hog Index is up today, slowing the recent trend lower
Pork values are also trying to stabilize
Pork exports have slowed lately despite weakness in the US dollar
October hogs are still trading within their recent sideways range
10-day moving average is holding staunch resistance

Bryan Doherty