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

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

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

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

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

Bryan Doherty