TFM Midday Update 6-29-20

CORN

July up 0.055 @ 3.225, September up 0.0525 @ 3.2425, December up 0.06 @ 3.3125
Forecasts look a little less bearish, showing hot temperatures and mixed precipitation
Market is looking for a 2.7 million acre drop tomorrow and grain stocks about 250,000 bushels below last June
July corn is trading back above the 50-day moving average level
December futures have rebounded back within their Bollinger Band range and are no longer oversold technically
Funds sold about 8,000 contracts on Friday

July down 0.025 @ 8.625, August down 0.0225 @ 8.5775, November down 0.0325 @ 8.58
Slightly less precipitation in extended forecasts
Recent rains in the Midwest should boost conditions
Market is looking for a 1.3 million acre increase tomorrow and a 392,000 bushel drop from June stocks last year
July beans made their first close below the 20-day moving average support level on Friday since June 1
July is testing that level as resistance this morning
November beans are holding their 50-day moving average support level for the second session in a row
Funds sold about 5,000 contracts on Friday

July CHI wheat is up 0.07 @ 4.81, July KC wheat is up 0.01 @ 4.2225, July MPLS wheat is down 0.025 @ 4.96
Slowdown in harvest selling pressures
Wet forecasts for Dakotas and Canadian Prairies
Better than expected winter wheat yields in many areas
Planted acreage expected to show no change from March, wheat stocks expected to come in 93 million bushels below last June
Winter wheat markets are showing an inside session so far with decent buying interest
Spring wheat futures are choppy but have extended the recent downtrend
Funds sold about 12,000 contracts of CHI wheat on Friday

June lives up 0.05 @ 94.75, August lives down 0.57 @ 95.45, October lives down 0.47 @ 99.00
August feeders down 1.32 @ 131.27, September feeders down 1.50 @ 132.27
Cash cattle values are still sliding
Beef values are at lowest levels since mid-March and are below year-ago levels
Equity markets stabilizing after testing support
August lives look unable to break through 20-day moving average resistance after many consecutive unsuccessful tests
August feeders tested the 20-day moving average support level and have since fallen below the 50-day moving average support level

July up 0.05 @ 45.32, August up 0.27 @ 48.40, October up 0.07 @ 47.07
Prices stable after last week’s bearish Hogs and Pigs report
Pork prices choppy to higher
CME Lean Hog Index possibly trying to grind out a low
August hogs are trying to make a bullish key reversal today after Friday’s sharp gap lower
Stochastics are oversold and leave futures vulnerable to a technical bounce

Bryan Doherty