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

SOYBEANS

  • 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

WHEAT

  • 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

CATTLE

  • 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

HOGS

  • 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

Author

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Sam Seid

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