TFM Midday Update 9-16-20

CORN

  • December up 0.0325 @ 3.69, March up 0.0275 @ 3.785, May up 0.0275 @ 3.8375
  • 6-10 day forecasts are showing good harvest weather
  • Continued Chinese interest in US corn
  • Calendar spreads are strengthening
  • December futures retested the 10 and 200-day moving average support levels overnight but surged back to positive territory after the 8:30 open
  • Overbought stochastics

SOYBEANS

  • November up 0.1975 @ 10.1125, January up 0.195 @ 10.15, March up 0.18 @ 10.14
  • China has continued to buy US beans into the rally
  • No major frost concerns for the next two weeks
  • China hog inventory increased 4.7% from July to August, illustrating their growing demand
  • November beans traded as low as 9.85 overnight but are now sharply higher
  • Bullish outside session forming
  • Technicals are sharply overbought

WHEAT

  • December CHI up 0.02 @ 5.4025, December KC up 0.0475 @ 4.7275, December MPLS up 0.0075 @ 5.25
  • Some dryness concerns for Black Sea region
  • US dollar has turned a bit lower this morning
  • Lots of outstanding wheat tenders this week
  • CHI futures are trapped between the 50-day moving average support level and the 20 and 200-day moving average resistance levels
  • KC futures are testing the 10-day moving average resistance level

CATTLE

  • October up 0.02 @ 107.12, December up 0.52 @ 112.10, February up 0.35 @ 116.37
  • September feeders down 0.67 @ 141.00, October feeders down 0.67 @ 143.00
  • Boxed beef values are trending lower, cash wires are quiet so far this week
  • Stock market optimism may support beef demand
  • Many traders are expecting beef production to accelerate in the next month or so
  • October lives retested 20 and 50-day moving average support levels and have bounced back to the upper end of the day’s range

HOGS

  • October down 0.55 @ 65.15, December down 0.85 @ 62.22, February down 0.42 @ 68.27
  • Cash trend is still higher, pork cutouts are rallying as well
  • China hog inventory jumped nearly 5% in August from July
  • Asian countries have continued to ban German imports but supply fundamentals have not changed
  • October hogs are still trading within their recent range after the sharp rally last week

Author

Avatar

Sam Seid

Sign up to get daily TFM Market Updates straight to your email!

back to TFM Market Updates