TFM Midday Update 8-3-20

CORN

September up 0.005 @ 3.165, December up 0.0025 @ 3.2725, March up 0.0025 @ 3.385
Nonthreatening weather forecasts are increasing chances for above trend line yield
Chinese government sold over 4mmt of corn last week at auction
Strong China demand for US corn is expected to persist
December corn is trying to stabilize near recent lows
Prices have already fallen back towards the middle of the day’s range so far
Oversold stochastics

August down 0.0125 @ 8.9625, September up 0.0225 @ 8.925, November up 0.035 @ 8.96
Palm oil futures had their biggest monthly gain in July since September 2015
Lack of threatening forecasts for August could bring yields above trend line
Better than expected US biodiesel demand in May
November beans have pushed through the 10 and 20-day moving average resistance levels but have fallen well off the session highs
Trend higher may still be intact

September CHI down 0.095 @ 5.2175, September KC down 0.1225 @ 4.3025, September MPLS down 0.0725 @ 5.0675
Talk of extremely high yields in Russia
US has been selling wheat to Brazil lately due to poor conditions in Argentina
US dollar is trying to stabilize
Winter wheat futures gapped lower this morning
CHI futures fell through the 100-day moving average support
KC futures are trading below the lower Bollinger Band resistance level
Spring wheat futures are testing contract lows

August lives down 0.12 @ 102.70, October lives down 0.10 @ 107.80, December lives up 0.05 @ 111.60
August feeders down 0.05 @ 144.62, September feeders up 0.07 @ 146.30
Beef values are starting to creep higher, cash cattle prices rallied into the end of last week
Slaughter numbers coming in near year-ago levels which is missing expectations and mitigating some excess beef production due to heavy weights
Live cattle futures are trading in quiet, two-way ranges above the 200-day moving average
Feeder markets are also trading near Friday’s closes

August hogs down 2.00 @ 50.00, October hogs down 1.32 @ 48.30, December hogs down 0.55 @ 49.82
Pork values trending lower, cash Index may have made a near term top
October hogs are trading at a much tighter discount to cash than the normal seasonal tendency
Pork production last week was up 8.4% from the same week last year
August hogs are trading at their lowest levels today since July 15

Kelly Rubisch