TFM Midday Update 7-30-20

CORN

September up 0.0125 @ 3.1675, December up 0.0125 @ 3.275, March up 0.0075 @ 3.39
Weather forecasts should bolster crop conditions
Ethanol production for the week ending July 24 was the highest since March 20 but still down 7% from the same week last year
Economic stress in Argentina could significantly cut down corn acreage
U.S. had net cancellations of 29,300 tonnes of corn for the week ending July 23, the worst week of the marketing year so far
December futures are trading in an inside session so far and are near the lows of the day
Oversold stochastics
Funds sold 14,000 contracts yesterday

August down 0.05 @ 8.865, September down 0.0275 @ 8.8175, November down 0.0175 @ 8.835
Palm oil futures have made their largest monthly gains in 5 years
Weather forecasts are bearish
Global demand for soybean meal is recovering faster than expected with China’s recovering hog herd
U.S. sold 257,800 tonnes of soybeans for the week ending July 23, down 29% from last week and 45% from the previous 4-week average
Soybean futures are trading in a choppy trading range today
Momentum is still pointing lower
Funds sold 4,000 contracts yesterday

December CHI down 0.02 @ 5.365, December KC down 0.045 @ 4.515, December MPLS down 0.0075 @ 5.24
European harvests are not meeting expectations
Lower U.S. dollar
Brazil bought at least 3 cargoes of wheat from the U.S.
U.S. sold 676,600 tonnes of wheat for the week ending July 23, up 10% from last week and up 30% from the previous 4-week average
CHI futures checked the 20 and 100-day moving average support levels and has rebounded back above the 10-day moving average
KC futures have fallen below the 10 and 20-day moving average support levels
Spring wheat is holding the 10-day moving average support level
Funds bought 7,000 contracts of CHI wheat yesterday

August lives down 0.02 @ 101.42, October lives up 0.22 @ 106.27, December lives up 0.27 @ 110.22
August feeders up 0.90 @ 142.87, September up 1.27 @ 143.85
Choppy beef prices
Smaller show lists this week could support cash prices but trade so far this week has been choppy to lower
U.S. sold 29,500 tonnes of beef for the week ending July 23, up 89% from last week and 81% from the previous 4-week average
October lives tested the 10-day moving average support and have pushed above yesterday’s highs
September feeders also tested the 10-day moving average support and are surging higher

August down 0.75 @ 52.32, October down 0.22 @ 49.60, December down 0.37 @ 50.65
Cash index is still trending higher
Carcass cutout values have been very volatile and trending lower
Average weights are pulling back along with the normal seasonal trend
U.S. sold 39,600 tonnes of pork for the week ending July 23, up 24% from last week and 12% from the previous 4-week average
August hogs are trading below the 10 and 50-day moving average support levels
October hogs tested the 20-day moving average resistance level but have fallen back to the session lows

Bryan Doherty