TFM Midday Update 8-28-2020

CORN

September down 0.0225 @ 3.42, December down 0.0225 @ 3.565, March down 0.0275 @ 3.6675
Rain amounts expected this weekend in Iowa and Illinois have been downgraded significantly
US dollar retesting recent lows
Demand still improving
EU and Brazil temporarily nixed corn import tariffs due to tight domestic supplies
Dec futures matched yesterday’s high but could not punch higher
Collapsing open interest suggests fund short covering
Overbought stochastics
Funds bought 10,000 contracts yesterday

September up 0.07 @ 9.4425, November up 0.05 @ 9.47, January up 0.055 @ 9.53
Rain forecasts are becoming milder for the weekend
Brazil removed import tariffs on soybeans due to tight supplies
Hurricane rains in southern growing states could create moisture issues
Highest Nov prices this morning since late January
Prices are trading above the Bollinger Band range and stochastics are overbought
Funds Bought 20,000 contracts yesterday

December CHI down 0.0175 @ 5.4075, December KC down 0.0175 @ 4.705, December MPLS down 0.0275 @ 5.3775
European futures are at a five-week high
US dollar retesting the recent lows
Dry conditions in Argentia may worsen
Hook reversal in CHI markets today
KC futures are testing the 100-day moving average support level
MPLS futures are correcting back within their Bollinger Band range
Funds bought 10,000 contracts of CHI wheat yesterday

August lives down 0.67 @ 102.30, October lives down 1.22 @ 104.92, December lives down 1.02 @ 108.32
September feeders down 1.32 @ 139.90, October feeders down 1.00 to 140.15
Soft cash trade this week
Beef prices have made higher closes for 16 consecutive sessions
Large supply of market-ready cattle and large supply of feeders ready to refill feedlots
October lvies are trading below the 50-day moving average level
A close below would be the first since June 22 and a negative technical development

October down 2.10 @ 53.62, December down 1.57 @ 55.00, February down 0.95 @ 61.85
Pork values are choppy lately
Strong export sales this week
Cash market is trending slowly higher
October futures gapped down this morning and are trading below the 10-day moving average support level
Stochastics have made a bearish crossover from overbought territory

Bryan Doherty