TFM Midday Update 10-21-2020

CORN

  • Dec up 6 cents @ 4.14-3/4
  • Snow for the Dakotas and parts of the Midwest will slow corn harvest
  • Still no sign of a peak as China demand strong & O/I up
  • Ethanol production avg. 913K barrels per day, down 2.56% from last week
  • Funds net buyers of 12K contracts – O/I: +13,900 contracts
  • Dec support @ 4.05 & resistance @ 4.17

SOYBEANS

  • Nov up 10 cents @ 10.73-3/4
  • Rain in Brazil over the next 10 days should allow planting progress to ramp up
  • Still no sign of a top, but weather improving in Brazil needs to be watched
  • Funds net buyers of 10K contracts – O/I: -1100 contracts
  • Jan support @ 10.50 & resistance @ 10.77

WHEAT

  • Dec Chi up 2-1/4 cents @ 6.34-1/4, Dec KC wheat up 5-1/4 cent @ 5.76-1/4, Dec MPLS up 9-1/4 @ 5.87
  • Chicago wheat futures rallies to near six-year highs
  • Strong global demand & unfavorable planting conditions in Russia/Ukraine
  • Russia hit record price levels last week, amid weak ruble & high export costs
  • US HRW wheat will receive some much-needed moisture from snow/freezing rain
  • Funds net buyers of 4K contracts of SRW – O/I: +8,200 contracts SRW & +1,500 contracts HRW
  • CHI resistance @ 6.17 & support @ 6.38, KC resistance @ 5.53 & resistance @ 5.79

CATTLE

  • Oct LC down 0.22 @ 103.90 & Oct FC up 0.35 @ 134.85
  • Cattle on Feed Report out 2:00 CT Friday
  • Initial gains posted this morning in LC unable to hold
  • Oversold short-term and in need of a technical bounce
  • Cash prices quiet for LC  & 138.66 as of 10/19 for FC
  • O/I: -1,070 contracts for LC & O/I: +132 contracts for FC

HOGS

  • Dec down 0.12 @ 69.12
  • Pig producers have built 12,500 pig farms and restarted 13K+ farms in China
  • China plans to restore the herd to 80% of normal levels by end of 2020
  • With China demand expected to decline, the market could be due for a set back
  • Cash Lean Index for 10/19 is 78.62
  • O/I: -5,992 contracts

Author

Amberlee Bratcher

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