TFM Midday Update 8-31-20

CORN

  • September up 0.03 @ 3.49, December unchanged @ 3.5925, March down 0.005 @ 3.6875
  • Rains over the weekend were lighter than expected in IA and IL
  • 96% of Iowa is at least abnormally dry as of Tuesday, the most since September 2013
  • December futures traded as high overnight as 3.6425, the highest price since March
  • Prices traded through the 200-day moving average resistance level for the first time in over a year but have fallen back below
  • Stochastics are sharply overbought

SOYBEANS

  • September up 0.085 @ 9.59, November up 0.0675 @ 9.5725, January up 0.07 @ 9.6325
  • Drier than expected weather in IA over the weekend
  • Forecasts are showing below-normal precipitation
  • Brazil eliminated 8% soybean import tax
  • Strong gap higher opens this morning
  • November beans traded as high overnight as 9.6675 but are now trading just off session lows
  • Stochastics are overbought and Nov futures are trading above the upper Bollinger Band

WHEAT

  • December CHI up 0.06 @ 5.5475, December KC up 0.085 @ 4.8075, December MPLS up 0.0475 @ 5.44
  • US dollar is testing recent lows
  • Black Sea wheat is still the cheapest in the world
  • European production estimates are coming down
  • CHI futures are trading at the highest levels since April
  • KC futures are testing the 200-day moving average resistance, and a close above would be the first since June
  • MPLS futures are testing the upper Bollinger Band resistance

CATTLE

  • August lives up 0.72 @ 103.95, October lives up 0.12 @ 105.02, December lives up 0.15 @ 108.65
  • September feeders down 0.27 @ 139.75, October feeders down 0.32 @ 139.87
  • Beef production last week was up 2.3% from the same week last year
  • Marketings are expected to increase with deteriorating pasture conditions
  • Choice beef made its first negative close on Friday since August 5
  • October lives tested the 50-day moving average resistance level but have since backed off

HOGS

  • October up 0.02 @ 53.67, December up 0.20 @ 55.40, February down 0.12 @ 61.85
  • Lowest carcass cutout close on Friday since August 11
  • Pork production last week was up 9.5% from last year
  • October futures barely traded below Friday’s lows but have since bounced back above
  • October couldn’t break above the 10-day moving average resistance

Author

Bryan Doherty

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