TFM Midday Update 6-18-20

CORN

July up 0.025 @ 3.325, September up 0.0175 @ 3.3675, December up 0.0125 @ 3.44
China is releasing corn from state reserves
Still, China corn prices are at highest prices since 2015
Rain totals and distribution still unclear for this weekend
US sold 357,800 tonnes of corn for the week ending June 11, down 46% from last week and down 45% from previous 4-week average
July corn recovered yesterday to close above its 10-day moving average support level, and has held so far today
Uptrend still intact
Funds bought about 6,000 contracts yesterday

July up 0.035 @ 8.7475, August up 0.0275 @ 8.745, November up 0.02 @ 8.785
Bounce off yesterday’s lows suggests active commercial buying
Concerns about crop conditions in the west
Strong China demand
US sold 538,100 tonnes of soybeans for the week ending June 11, down 46% from last week and down 36% from the previous 4-week average
July beans trading above the 100-day moving average for the second session in a row
A close above the 100-day would be the first since January 17
Overbought stochastics
Funds bought about 6,000 contracts yesterday

July CHI down 0.02 @ 4.8675, July KC up 0.0025 @ 4.3275, July MPLS up 0.055 @ 5.2575
Egypt is tending for wheat today, Russia currently has lowest offer
Declining spring wheat conditions in North Dakota, forecasts for northern Plains look hot and dry for the next two weeks
US sold 504,800 tonnes of wheat for the week ending June 11
CHI wheat futures are extending their recent downtrend further into oversold territory
KC futures are trying to consolidate near recent lows
Spring wheat futures testing overhead resistance at the upper Bollinger Band level
Funds sold about 6,000 contracts of CHI wheat yesterday

June lives down 0.25 @ 96.25, August down 0.80 @ 96.05, October down 0.62 @ 99.20
August feeders down 0.80 @ 132.77, September feeders down 1.05 @ 133.90
Choppy cash trade so far this week
Beef values collapsing below prices from the same time last year
August lives have fallen back below the 10-day moving average support level
August feeders tested their 100-day moving average resistance level but have fallen back below the 10 and 20-day moving average support levels

Sam Seid