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

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

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

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

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

Bryan Doherty