TFM Midday Update 6-16-20

CORN

July up 0.02 @ 3.3125, September up 0.0225 @ 3.36, December up 0.025 @ 3.44
Diverging weather forecasts for the weekend
American models showing plentiful rains, European models are showing spotty coverage
G/EX ratings dropped last night to 71% from 75% last week
July corn gapped higher overnight
July traded as high early on as 3.345 testing upper Bollinger Band resistance, but is now at session lows
Funds sold about 3,000 contracts yesterday

July down 0.0275 @ 8.66, August down 0.0225 @ 8.6775, November down 0.0225 @ 8.74
Conflicting weather forecasts for the weekend
Markets anticipating higher planted acreage on end of month report
G/EX ratings were unchanged last night at 72%
High level US officials meeting with Chinese officials today as tensions build
July futures are trapped between 10-day moving average support level and 100-day moving average resistance level
Overbought stochastics
Funds sold about 2,000 contracts yesterday

July CHI down 0.055 @ 4.9925, July KC down 0.0825 @ 4.375, July MPLS down 0.0225 @ 5.1275
European futures near a 3-month low
Increasing Russian crop estimates and beneficial rains lately in Germany
Winter wheat G/EX ratings down to 50% vs 51% last week; Spring wheat G/EX ratings down to 81% from 82% last week
CHI futures tested overhead 10-day moving average resistance and are now near the lows of the session
KC futures fell through May lows and are now at lowest levels since mid-March
MPLS futures tested 10, 20 and 50 day moving average resistance levels early in the morning
Funds were net even in CHI wheat yesterday

June lives up 0.45 @ 96.52, August lives up 0.60 @ 96.60, October lives up 0.82 @ 99.47
August feeders up 0.92 @ 132.10, September feeders up 0.92 @ 133.50
Light cash trade yesterday, weighted average price of 102.65
Increasing cattle weights and daily kill
Quiet technical action for August lives, currently holding 10-day moving average support at session lows
August feeders are still between 50-day moving average support and resistance at the 10 and 20-day moving average
Sideways trend in both live and feeder markets

July down 2.65 @ 49.62, August down 2.20 @ 53.00, October down 1.72 @ 51.45
Cash market at a normal discount to futures and downtrend may be waning
Carcass cutout values were down nearly 5.00 at yesterday’s close and is over 17.00 below the same time last year
Slaughter for the week so far is above last week but has fallen back below the same week last year
July and August futures are trading below the lower Bollinger Band support level
October hogs have fallen below the 10 and 20-day moving average support levels and a close below would be the first since June 3

Sam Seid