TFM Midday Update 8-13-2020

CORN

September up 0.0875 @ 3.2325, December up 0.09 @ 3.3625, March up 0.085 @ 3.4725
Lack of rain in forecasts for the next two weeks could disrupt filling
USDA did not change Chinese production, imports or usage which opens the door for bullish revisions in future reports
End-users may begin to book needs on the potential of fund short-covering bounce
US sold 377,200 tonnes of corn for the week ending August 6, up sharply from last week and up 18% from the previous 4-week average
Dec futures are trading at their highest prices today since July 20
Prices are testing the 50-day moving average resistance level
Funds bought 10,000 contracts yesterday

August up 0.1675 @ 9.0725, September up 0.155 @ 8.96, November up 0.16 @ 8.99
Lack of rain in forecasts could keep yield from reaching USDA estimate of 53.3bpa
Strong China demand lately is expected to continue with growing demand for feed grains
US sold 570,100 tonnes of beans for the week ending August 6, up 65% from last week and up 96% from the previous 4-week average
November beans have pushed through the 10, 20 and 50-day moving average resistance levels
Next resistance comes in at the 200-day moving average level
A close at current prices would be the highest since July 27
Funds bought 7,000 contracts yesterday

December CHI up 0.0525 @ 5.055, Dec KC up 0.0525 @ 4.3425, Dec MPLS up 0.0425 @ 5.1125
Egypt is tendering for wheat again today after buying wheat from Russia earlier in the week
Global wheat stocks increased yesterday which could limit bounce potential
US dollar still looks weak
US sold 367,900 tonnes of wheat for the week ending August 6, down 39% from last week and down 45% from the previous 4-week average
CHI and MPLS futures are pushing towards the high end of the recent trading ranges
KC futures are trading above the 10-day moving average for the first time since July 31
Funds sold 4,000 contracts of CHI wheat yesterday

August lives up 0.42 @ 106.77, October lives up 0.50 @ 110.07, December lives up 0.17 @ 112.72
August feeders up 0.10 @ 145.35, September feeders down 0.37 @ 147.57
Beef prices are rallying
Cash trade as high as 105 yesterday in a very strong higher trend
Bearish USDA report
US sold 11,600 tonnes of beef for the week ending August 6, down 13% from last week and down 46% from the previous 4-week average
October lives are at the highest levels since March 8
Overbought technicals though momentum is pointing higher

August up 0.25 @ 53.15, October up 0.30 @ 51.90, December up 0.45 @ 53.82
Cash index is slightly higher
Hog weights have begun to creep higher
US sold 10,500 tonnes of pork for the week ending August 6, down 66% from last week and down 70% from the previous 4-week average
Oct futures are trading in a tight range today, directly below the 100-day moving average resistance level
December futures are still trending higher despite quiet session so far today

Bryan Doherty