TFM Midday Update 8-7-20

CORN

September down 0.035 @ 3.0775, December down 0.0325 @ 3.205, March down 0.03 @ 3.325
Rains in the forecast for Iowa should relieve some of the growing dryness concerns
US corn crops in a drought area dropped to 18% this week from 19% last week, the first weekly decline since April
Potential for some short covering into next week’s Supply and Demand report if rains miss Iowa
Dec futures are testing the contract lows made on Tuesday
Calendar spreads are weakening
Funds were net even in corn yesterday

August down 0.055 @ 8.7525, September down 0.0525 @ 8.695, November down 0.0575 @ 8.7225
China soybean imports slowed significantly in July
Most are expecting the USDA to raise the national yield estimate on next week’s report
Improving crop conditions which is unusual for this time of year
November futures are testing and holding the lower Bollinger Band and 100-day moving average support level
Lowest prices since June 30
Funds sold 2,000 contracts yesterday

December CHI down 0.0875 @ 4.995, December KC down 0.0625 @ 4.2225, December MPLS down 0.035 @ 5.0725
Russia and Canada are expected to raise huge crops this year
US dollar is making a strong push above the 10-day moving average resistance level
Egypt bought wheat this week from Ukraine and Russia
Improving weather for Australia
CHI futures at lowest prices since July 7, KC and MPLS futures are making new lows
All markets are sharply oversold
Funds sold 7,000 contracts of CHI wheat yesterday

August lives up 0.47 @ 103.10, October lives up 0.27 @ 107.27, December lives down 0.05 @ 110.90
August feeders down 0.17 @ 143.30, September feeders up 0.07 @ 145.95
Slow slaughter pace so far this week is keeping beef production in check but adding to weights
Cash prices are trending higher and beef values are at their highest levels in a month
October lives tested the 10 and 200-day moving average support levels earlier in the morning and are now at session highs
September feeders are also at session highs after finding early sellers on yesterday’s reversal action

August up 1.30 @ 51.05, October up 1.37 @ 50.60, December up 0.85 @ 52.37
The cash Index and pork values are stabilizing
Belly values have jumped over 12.00 from last week and Ham prices are up nearly 18.00 since Tuesday
Exports have been soft lately
October hogs are testing the 50-day moving average resistance level
A close above the 50-day would be the first since July 16 and could turn the technical trend higher

Bryan Doherty