TFM Midday Update 8-24-20

CORN

September up 0.0325 @ 3.3025, December up 0.03 @ 3.4325, March up 0.0275 @ 3.555
ProFarmer Crop Tour pegged US production @ 14.820bbu vs current USDA estimate @ 15.278bbu
6-10 day forecasts are showing cool and wet conditions, but most of the corn belt will endure very hot temperatures for the first half of this week
China corn imports are up 30.7% from last year’s pace
December futures are trading near the middle of the day’s range so far
Moving averages are making bullish crossovers, stochastics are overbought
Funds bought 7,000 contracts of corn on Friday

September down 0.0075 @ 9.00, November up 0.005 @ 9.0525, January up 0.01 @ 9.1225
ProFarmer Crop Tour pegged US production @ 4.362bbu vs current USDA estimate @ 4.425bbu
Dryness expanding in Iowa, Nebraska, and Dakotas recently
Hot temperatures this week could further stress soybeans though extended forecasts are much less threatening
Dryness in Argentina and Brazil, possible La Nina developing for Q4 of this year
November beans have tested and held the 10 and 200-day moving average support levels this morning
Moving averages are making bullish crossovers, stochastics are nearly overbought
Funds sold 1,000 contracts of soybeans on Friday

December CHI wheat down 0.045 @ 5.305, December KC wheat down 0.07 @ 4.4975, December MPLS wheat down 0.0325 @ 5.2575
China wheat imports in July were up 325% from last July!
Argentina plantings are just now finishing up but dryness and frost have already been cause for concern
IKAR raised their Russian wheat production estimate again this morning
CHI futures are trading at the lows of the day after bouncing higher overnight
KC futures are testing and holding their 50-day moving average support level
Spring wheat futures have fallen back below their 50-day moving average support
Funds bought 4,000 contracts of CHI wheat on Friday

August lives down 0.75 @ 105.05, October down 1.20 @ 107.35, December lives down 1.60 @ 110.17
August feeders down 1.40 @ 141.52, September down 2.67 @ 142.17
Bearish Cattle on Feed report on Friday
Beef prices are at highest levels since mid-June
Cash wires are quiet so far this morning
Weights are still heavy which will keep production running high
October lives are trading at the lows of the day after gapping below the 20-day moving average support level
September feeders are testing the 200-day moving average resistance level after gapping lower this morning

October up 0.87 @ 55.12, December up 0.35 @ 55.80, February up 0.32 @ 62.20
Cash Index is trending higher
Pork values were down hard on Friday afternoon to their lowest prices since mid-August
China pork imports in July were up 136% from last July!
Pork production last week was up 4.9% from the same week last year
October futures are trading in an inside session so far, but are testing the highs from late last week
Momentum indicators are pointing higher and stochastics are nearly overbought

Bryan Doherty