TFM Midday Update 7-13-20

CORN

July down 0.075 @ 3.33, September down 0.08 @ 3.2925, December down 0.0825 @ 3.365
Widespread rain coverage lately
Hot temperatures and above-normal precipitation expected for the next two weeks
China bought 1.365mmt of corn from the US on Friday, the 2nd largest one-day purchase of US corn by China on record
China flooding may impact up to 8.72 acres of corn
Dec futures gapped lower overnight and are trading below the 20-day moving average level for the first time since June 30
Funds sold 35,000 contracts of corn on Friday

July down 0.04 @ 8.875, August down 0.10 @ 8.77, November down 0.12 @ 8.785
Rains over the past week have helped to stabilize crop conditions despite hot temperatures
Non-threatening weather forecasts for the next two weeks are attracting sellers
World ending stocks came in a bit lower than expected on Friday and China demand was revised higher
Nov beans gapped lower and are trading below their 20-day moving average level for the first time since June 30
Funds bought about 8,000 contracts of CHI wheat on Friday

Dec CHI wheat down 0.0325 @ 5.3575, Dec KC wheat down 0.015 @ 4.6275, Dec MPLS down 0.035 @ 5.3475
USDA still expecting record world ending stocks
US wheat production came in below expectations and KC carryout came in at a six-year low
China bought over 300,000 tonnes of US wheat on Friday including 130,000 tonnes of KC wheat
Dec CHI wheat tested the 100-day moving average support level early this morning
KC and MPLS futures tested and held their 20-day moving average support levels
Funds bought 8,000 contracts of CHI wheat on Friday

August lives down 0.02 @ 99.97, October lives down 0.10 @ 104.52, December lives up 0.07 @ 108.50
August feeders up 1.10 @ 136.85, September feeders up 0.75 @ 138.07
Choice beef values bounced higher on Friday from their lowest levels since October 2018
Cash trade on Friday steady to slightly higher than the previous week, 5-area average went up by 0.88
August lives tested the upper Bollinger Band resistance level this morning but have fallen back lower
August feeders are trading above their upper Bollinger Band resistance level, nearly overbought

July up 0.12 @ 46.10, August down 0.30 @ 49.57, October down 0.45 @ 49.40
Cash Index is higher, pork values look poised to break above their recent trading range
China pig prices are rallying quickly, and China imports are likely to stay strong
China will sell 20,000 tonnes of pork from state reserves today, adding to the 400,000 tonnes sold so far this year
August hogs failed to break through the 20-day moving average resistance level for the third session in a row

Sam Seid