TFM Midday Update 6-24-20

CORN

July up 0.0225 @ 3.2725, September up 0.012 @ 3.31, December up 0.0125 @ 3.38
Bearish weather outlook clashing with large fund net-short position
Many are anticipating global demand for US ethanol to increase along with oil prices
US corn is currently cheaper than Brazil
July corn closed below the 20-day moving average support level for the first time yesterday since May 14
Prices are testing the 10 and 20-day moving average levels as overhead resistance
Trend is now lower

July down 0.0025 @ 8.7475, August down 0.0125 @ 8.7075, November up 0.0025 @ 8.7425
Strong demand expectations from China
Weather forecasts are showing above-normal temperatures and above-normal precipitation
US beans are cheaper than Brazilian supplies
Soybean futures are trading within yesterday’s range so far
Successful test of nearby 10-day moving average support level this morning
Stochastics are still overbought

July CHI down 0.0075 @ 4.8525, July KC down 0.01 @ 4.34, July MPLS up 0.0275 @ 5.175
Winter wheat harvest progress may limit upside
Spring wheat crop should benefit from rain in forecasts
Recovery bounce in US dollar today
Russian wheat production expectations increasing
Quiet inside session for CHI wheat
KC wheat mad an unsuccessful test of 10-day moving average resistance level despite bullish key reversal yesterday
Spring wheat is back above the 10 and 50-day moving average levels

June lives up 0.82 @ 94.35, August lives down 0.80 @ 96.40, October lives down 0.25 @ 99.62
August feeders down 0.47 @ 132.72, September feeders down 0.50 @ 133.97
Weekly beef production is exceeding production last year despite lower daily kills
Tightening Chinese restrictions on meat imports related to Covid contamination
Choice beef values still falling despite lower beef supplies on Cold Storage report
August lives fell back below the 100-day moving average resistance after another test this morning

Sam Seid