TFM Midday Update 6-26-20

CORN

July down up 0-1/2 cent at 3.17.1/2
Weather outlook conducive to corn production
Energy complex – small losses on futures.
Acreage and Stocks report next Tuesday, 11:00 central
US dollar is slightly firmer
Exports remain an anchor on prices.
Technical weakness this week and likely adding of short by funds, some estimates now approaching 300,000 shorts

July Chicago down 16 at 4.70-3/4
Harvest pressure
Expectations for improved rating for spring crop
Technical weakness as prices push to their lowest level this year and within cents of the contact low from last September
Concerns with trade and Russia selling additional wheat from recent expectations
US Dollar slightly higher today

June lives up .025 @ 94.200
August lives down .225 @ 95.850, October lives down .100 @ 99.550
August feeders down .150 2 133.125, September feeders down .250 @ 134.250
Cattle seeing choppy, two-sided trade
Cash cattle and beef values are still sliding lower as choice carcasses nearing the $200.00 level.
Cash trade completed on the week, priced $5-8 below last week, but stayed firm from early week trade
USDA and FDA indicated that there is no evidence that Covid can be transmitted through food or food packaging

July down 1.725 @ 45.200, August down 3.600 @ 47.725, October down 3.350 @ 47.175
Quarterly Hogs and Pig Report came in larger than expectations at 105% of last year for total hogs or 79.6 million pigs
Hogs kept for marketing at a record of 73.3 million head, or 106% of last year reflecting COVID-19 slaughter issues
July, August and October contracts broke to new contract lows
Sharp jump in pork values so far this week, mid-day carcass were .93 firmer to 65.98
Slaughter lagging behind last week will keep pressuring the cash Index but will also help keep pork inventories from becoming too burdensome

Sam Seid