TFM Midday Update 6-10-20

CORN

July down 0.0125 @ 3.2625, September down 0.005 @ 3.325, December down 0.0125 @ 3.42
Dry weather in the next two weeks may benefit areas that are currently too wet
Energy prices are lower this morning with increasing talk of a correction lower
Position squaring ahead of tomorrow’s USDA report
July corn is trading at the highs of the day after testing the 50-day moving average support level
Still below the 10-day moving average level that was support during yesterday’s session

July CHI up 0.02 @ 5.065, July KC up 0.0025 @ 4.58, July MPLS up 0.02 @ 5.2625
Hot and dry weather in the southern Plains may negatively impact KC yield but will allow for speedy harvest
Spring wheat acreage may come in lower than estimated in March
Spring wheat growth lagging behind
July CHI wheat is testing resistance levels that held as support yesterday
July KC wheat briefly tested the 10-day moving average resistance but has since fallen back and is trading at session lows
MPLS futures are extending their current trend higher

June lives up 0.10 @ 96.42, August lives down 0.90 @ 96.90, October lives down 0.67 @ 99.90
August feeders down 0.70 @ 133.55, September feeders down 0.55 @ 135.00
Boxed beef markets are still weakening
Cash wires are quiet so far this week
Slaughter numbers are ramping up quickly, currently near 98% of total capacity
August lives are trading within yesterday’s range so far
Unsuccessful test of 10 and 20-day moving average resistance

June down 0.12 @ 47.95, July up 0.25 @ 53.22, August down 0.10 @ 56.70
Cash and pork prices moving lower
Slaughter is running at about 95% of full capacity
China pig prices are rallying
Brazilian packing plants are experiencing disruptions due to COVID
July hogs are trading just off the highs of the session
Stochastics are oversold

Sam Seid