TFM Midday Update 8-17-2020

CORN

September up 0.1175 @ 9.0875, November up 0.1175 @ 9.1025, January up 0.12 @ 9.1575
Hot and dry forecasts for the second half of August could impact pod-filling
Very strong China demand lately
China is reportedly asking for documentation that soybean shipments are Covid-19 free
November beans gapped higher this morning
Prices are sharply above the 200-day moving average resistance level
Nov futures are testing the highs from July 6
Funds sold 2,000 contracts on Friday

Sep CHI up 0.165 @ 5.165, Sep KC up 0.1075 @ 4.3575, Sep MPLS up 0.0925 @ 5.0625
Dryness issues in Argentina, and a sharp drop in French production
Big yields and production in Canada and Australia
Turkey and Algeria are tendering for wheat this week and will likely purchase from Russia and/or Ukraine
CHI futures have pushed through the 10, 20 and 50-day moving average resistance levels for the first time since July 31
KC and MPLS futures are trading above their 10 and 20-day moving average resistance levels for the first time since July 31
Funds bought 3,000 contracts on Friday

August lives up 0.40 @ 108.00, October lives up 0.52 @ 110.75, December lives up 0.87 @ 113.70
August feeders down 0.02 @ 134.90, September feeders down 0.35 @ 146.22
Cash cattle rallied 2.00-4.00 last week
5-area average was up 4.24 last week
Labor Day beef demand should help to support
October lives are trading at their highest levels since Feb 27
September feeders have fallen back below the 10-day moving average support

October up 0.57 @ 53.60, December up 0.25 @ 54.87, February up 0.12 @ 62.02
Highest pork values on Friday since June 1
China hog herd is growing quickly which will cut down on US pork purchases in 6-12 months
Slaughter is beginning to speed up again
October hogs made just their second close above the 100-day moving average on Friday since January
Prices are surging higher again today and are testing the recent highs from August 10

Bryan Doherty