TFM Midday Update 8-14-2020

CORN

September down 0.0125 @ 3.24, December down 0.0125 @ 3.375, March down 0.0025 @ 3.495
China corn futures were up overnight due to strong demand for feed
Talk that nearly 10 million acres could be affected by Monday’s storms in Iowa
Dry weather could hinder kernel filling
Dec futures tested the 50-day moving average support level early in the session but have bounced back
Prices are currently trading just below the 100-day moving average resistance level
Funds bought about 47,000 contracts yesterday!

September down 0.01 @ 8.9525, November down 0.0225 @ 8.9725, January down 0.02 @ 9.025
China has bought beans from the US for the past seven sessions in a row
Talk of a La Nina weather pattern during South American planting in the fall could support
Inflationary concerns
November beans made their highest close yesterday since July 27 after a test of the 200-day moving average resistance
Early pressure today, but prices have bounced back to the upper third of the day’s range so far
Funds bought 13,000 contracts yesterday

Dec CHI up 0.0925 @ 5.1575, Dec KC up 0.06 @ 4.42, Dec MPLS up 0.0525 @ 5.1625
World ending stocks are still projected at record levels, though KC stocks are set to decline sharply from last year
Egypt bought wheat from Russia again yesterday
Weak US dollar
Dec CHI and MPLS wheat has broken through the 10-day moving average resistance and is testing the 50-day resistance
Dec KC wheat tested the 10-day moving average support and is testing the 20-day moving average resistance
Funds bought 5,000 contracts of CHI wheat yesterday

August lives up 0.15 @ 107.20, October lives unchanged @ 110.15, December lives down 0.15 @ 112.67
August feeders down 0.95 @ 144.00, September down 0.85 @ 146.52
Cash cattle trade is up 1.00-4.00 so far this week
Cattle slaughter this week has overtaken slaughter from last week and the same week last year though weights are still increasing
October lives are extending their recent rally but buyers may be slowing due to overbought technicals
September feeders are testing the 10-day moving average support level

August up 0.17 @ 53.87, October up 1.00 @ 53.35, December up 0.32 @ 54.67
The Cash Index is lower today and pork values made a strong close higher yesterday
Pork sales have been soft lately
Increasing China herd size may impact US purchases in the months ahead
October futures moved back above the 100-day moving average resistance level and are now testing the upper Bollinger Band resistance level
December futures are trading in a tight range, also testing the 10-day moving average resistance

Bryan Doherty