TFM Midday Update 8-27-2020

CORN

September up 0.0275 @ 3.4325, December up 0.0275 @ 3.57, March up 0.02 @ 3.68
Ethanol production for the week ending August 14 came in 0.87% higher than last week and down 9.48% from the same week last year
For the first time in 14 weeks, China’s state corn auction did not result in 100% of the corn being purchased
High Brazilian corn prices
US sold 270,400 tonnes of corn for the week ending August 20, up sharply from last week and the previous 4-week average
December futures are at their highest prices since July 10
Overbought stochastics
Funds sold 1,000 contracts yesterday

September up 0.19 @ 9.385, November up 0.1875 @ 9.43, January up 0.175 @ 9.4775
Parts of the Midwest will get rains this weekend from the hurricane
Still no rain in the forecasts for Iowa and Illinois which have been very hot and dry for the last two weeks
US sold 50,400 tonnes of beans for the week ending August 20, down sharply from last week and down 82% from the previous 4-week average
November beans are trading at their highest levels today since January 24
Stochastics are overbought and futures are well above the Bollinger Band range
Funds bought 7,000 contracts yesterday

September CHI up 0.0625 @ 5.3825, September KC up 0.075 @ 4.5775, September MPLS up 0.04 @ 5.2125
Aggressive China buying lately
Houston-Galveston and Beaumont ports in Texas will be affected my hurricane and are major wheat exporters
US sold 764,100 tonnes of wheat for the week ending Augst 20, up 46% from last week and up 41% from the previous 4-week average
CHI futures have broken through the 200-day moving average resistance level
KC and MPLS futures have broken through the 100-day moving average resistance level
Stochastics are overbought for all contracts
Funds bought 5,000 contracts of CHI wheat yesterday

August lives down 1.95 @ 102.10, October lives down 1.72 @ 105.30, December lives down 1.85 @ 108.67
August feeders down 0.37 @ 142.10, September down 1.37 @ 140.40
Cash tone is getting a bit weaker
Beef prices have rallied 15 sessions in a row
Talk of strong feeder imports from Mexico
October lives fell below the 200-day moving average support level for the first time since August 10
September feeders traded sharply below their 50 and 200-day moving average support levels but have since crawled back above

October down 0.10 @ 55.45, December down 0.02 @ 56.30, February up 0.02 @ 62.75
Weights dropped for the week ending August 22
Cutout values have taken sharp losses this week
Huge kill schedules will keep production high despite the slight decrease in weights
October hogs are trading just off the day’s lows in a quiet, inside session
Overbought stochastics
Dec and Feb hogs are also making inside sessions with overbought stochastics

Bryan Doherty