TFM Midday Update 7-21-20

CORN

September down 0.0475 @ 3.235, December down 0.04 @ 3.3175, March down 0.0375 @ 3.425
Rains have helped to stabilize crop conditions in Iowa but Indiana and Ohio are still dry
6-10 day forecast is mostly nonthreatening
Crop conditions were steady with last week @ 69% G/EX
December corn is falling towards the lows last week at 3.305
Stochastics are nearly oversold

August down 0.0525 @ 8.9775, September down 0.05 @ 8.9125, November down 0.065 @ 8.935
Forecasts for the first few days of August are hot and are showing mostly normal precipitation
Indiana and Ohio are already dry and crops could enter the key month of August already stressed
USDA increased crop conditions against expectations, with G/EX currently @ 69% vs 68% last week
November beans tested the 10-day moving average support level and have since bounced a bit higher
Trend higher appears to still be intact as long as that support level holds

December CHI wheat up 0.075 @ 5.3625, December KC wheat up 0.075 @ 4.54, December MPLS wheat up 0.04 @ 5.25
Lowest US dollar close yesterday since March
Egypt is tendering for wheat today
Milling wheat futures in Europe were down 1.6% on talk of better than expected French yields
Winter wheat harvest was reported @ 74% complete vs 79% expected, spring wheat conditions were reported @ 68% G/EX
CHI futures have pushed back above the 20-day moving average resistance level and are currently testing the 10-day moving average resistance level
KC and MPLS futures are creeping higher towards the 20-day moving average resistance level

August lives down 0.62 @ 101.65, October lives down 0.20 @ 106.17 and December lives down 0.20 @ 110.25
August feeders down 0.12 @ 141.47, September feeders down 0.02 @ 142.97
Heavy production lately but beef values may be trying to stabilize
Shaky beef demand as restaurants’ reopening has been bumpy
Above-normal temperatures could held to stem some weight gain
August live cattle have traded within a tight, inside range so far today

August up 0.67 @ 51.07, October up 0.65 @ 49.85, December up 0.32 @ 51.52
Sharp pullback in pork values yesterday, cash Index a bit higher
Heavy production lately is making prices reliant on continued strong demand from China
August hogs held the 10 and 20-day moving average support levels at yesterday’s close
Prices have bounced back a bit off those support levels

Bryan Doherty