TFM Midday Update 7-8-20

CORN

July down 0.005 @ 3.445, September down 0.0125 @ 3.4225, December down 0.015 @ 3.5075
Weather forecasts are showing some rain and hot temperatures
China production could drop up to 4% this year due to lower acres and Armyworm issues
China corn prices are near 5-year highs
Dec corn traded as low as 3.475 this morning but have since rebounded back above their 100-day moving average support level
Stochastics are close to overbought levels

July down 0.01 @ 8.9425, August down 0.02 @ 8.9475, November down 0.02 @ 9.005
Tightening feed grain supplies in China
Less threatening weather forecasts, with rains seen in different parts of the country for the next two weeks
November beans fell back within their Bollinger Band range this morning
Nov futures are still overbought according to stochastics
Buyers have pushed prices back into the upper third of the day’s range

September CHI up 0.14 @ 5.095, Sep KC up 0.1275 @ 4.5325, Sep MPLS up 0.0425 @ 5.1725
Lower French and Russian crop estimates published lately
European futures are at their highest since early June
Egypt bought wheat in a tender from Russia yesterday
CHI futures have surged through the 20 and 50-day moving average resistance, KC futures have broken above their 20-day resistance
Spring wheat futures are trading above their 10-day moving average for the first time since June 22

August lives down 0.80 @ 99.20, October lives down 0.92 @ 103.25, Dec lives down 0.72 @ 106.27
August feeders down 1.42 @ 133.50, September feeders down 1.12 @ 135.20
Lowest beef values since February
Early week cash trade steady with the end of last week
Weekly slaughter running behind last week
August lives fell back within their Bollinger Band range, momentum possibly rolling over

July down 0.67 @ 43.85, August down 0.35 @ 48.52, October up 0.22 @ 48.85
Cash Index slightly lower this morning
Pork values are at their lowest levels since mid April
China will be auctioning more pork put of state reserves today as domestic prices surge
August made a third unsuccessful test of the 10-day moving average resistance level this morning

Bryan Doherty