TFM Midday Update 7-31-20

CORN

  • September down 0.0025 @ 3.155, December down 0.005 @ 3.2625, March down 0.005 @ 3.3775
  • China purchased 1.94mmt of corn from the US yesterday, their largest single-day purchase from the US on record
  • Corn is pollinating in near-perfect weather
  • No threatening weather in the forecasts
  • December futures are extending their recent downtrend
  • Trading near the lows of the day
  • Oversold stochastics
  • Funds were net even in corn yesterday

SOYBEANS

  • August up 0.0625 @ 8.98, September up 0.055 @ 8.9225, November up 0.055 @ 8.9375
  • Largest weekly sales figure this week since October 2013
  • Talk of large acreage switch to beans in Argentina this year due to economic uncertainty
  • Bearish weather forecasts
  • November soybeans tested the 10 and 20-day moving average resistance levels
  • A close above should restart the trend higher
  • Funds bought about 2,000 contracts yesterday

WHEAT

  • December CHI up 0.035 @ 5.395, December KC up 0.0175 @ 4.5225, December MPLS unchanged @ 5.2625
  • US dollar is trying to stabilize today
  • European farmers are slow sellers lately which is supporting milling wheat futures
  • Talk of frost damage in Argentina on an already dry crop
  • CHI futures tested the 10-day moving average support and have bounced higher
  • KC futures are testing the 10-day moving average resistance
  • Spring wheat futures briefly tested the 20-day moving average but are now near the lows of the day
  • Funds sold about 2,000 contracts of CHI futures yesterday

CATTLE

  • August lives up 0.52 @ 102.25, October lives up 0.60 @ 107.35, December lives up 0.50 @ 110.95
  • August feeders up 0.65 @ 143.67, September feeders up 0.32 @ 144.75
  • Cash trade has been choppy this week and rallied above last week’s prices yesterday afternoon
  • Choppy beef prices so far this week
  • Strong export sales this week
  • October lives are trading above their 200-day moving average resistance level for the first time since February 21
  • September feeders are trading at their highest levels since March 3

HOGS

  • August hogs up 0.27 @ 51.70, October hogs up 1.07 @ 49.40, December hogs up 0.70 @ 50.47
  • Cash Index is still trending higher
  • Pork prices showing signs of weakness
  • USDA expecting a record increase in production from Q2 to Q3
  • Strong week of export sales
  • October hogs tested the lower Bollinger Band support level and are currently testing the 10 and 20-day moving average resistance levels
  • December hogs tested lows of the range and are trading back within the Bollinger Band range

Author

Avatar

Sam Seid

Sign up to get daily TFM Market Updates straight to your email!

back to TFM Market Updates