TFM Midday Update 7-23-20

CORN

  • September down 0.0125 @ 3.2625, December down 0.015 @ 3.3325, March down 0.0125 @ 3.435
  • Pressure on US dollar, fire at a Brazilian port yesterday
  • Lack of threatening forecasts
  • US sold 220,600 tonnes of corn for the week ending July 16, down 76% from the previous 4-week average and down 56% from the previous 4-week average
  • December futures briefly tested the 10-day moving average resistance level
  • Prices have since backed off and are still oversold

SOYBEANS

  • August up 0.0425 @ 9.035, September up 0.04 @ 8.98, November up 0.0275 @ 8.9825
  • Forecasts are not showing widespread heat and dryness
  • Strong demand from China
  • Dropping palm oil production and stocks in Indonesia
  • US sold 365,200 tonnes of beans for the week ending July 16, up 17% from last week but down 31% from the previous 4-week average
  • November beans are trading within a relatively quiet session so far
  • Nearby contracts are testing the highs from Monday

WHEAT

  • Dec CHI down 0.055 @ 5.3425, Dec KC down 0.0625 @ 4.5325, Dec MPLS down 0.025 @ 5.2575
  • US dollar at lowest levels since early March
  • Market is still trying to price in record world inventories
  • Russia wheat acreage estimates increased by 1.2% for the 2020/2021 marketing year
  • US sold 616,700 tonnes for the week ending July 16, down 19% from last week but up 24% from the previous 4-week average
  • CHI futures are currently testing their 10-day moving average resistance level
  • KC futures fell back below their 10 and 20-day moving average support
  • Spring wheat futures are recovering near the session highs

CATTLE

  • August lives down 0.52 @ 100.97, October lives down 0.85 @ 104.87, December lives down 0.70 @  109.42
  • August feeders up 0.77 @ 142.30, September feeders up 0.22 @ 143.50
  • Cattle on Feed report on Friday
  • Bearish Cold Storage report yesterday
  • Cash markets trying to push higher
  • August lives have fallen back below the 10-day moving average support in a bearish outside day

HOGS

  • August up 1.85 @ 54.50, October up 1.37 @ 51.45, December up 0.80 @ 52.25
  • Cash index is higher, pork prices are lower
  • Production surging
  • Bearish Cold Storage report
  • Highest August futures prices since June 16
  • Stochastics are creeping higher toward overbought levels

Author

Bryan Doherty

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