TFM Midday Update 7-15-20

CORN

September down 0.01 @ 3.25, December down 0.015 @ 3.3225, March down 0.0125 @ 3.4325
Warm and wet forecasts should relieve stress
China made its largest single-day purchase of US corn yesterday
Lack of buyer interest after sharp losses is concerning
Dec corn traded as low as 3.305 this morning but has rebounded off the lows
Moving average levels are beginning to make bearish crossovers
Funds sold about 7,000 contracts yesterday

August up 0.06 @ 8.84, September up 0.0475 @ 8.79, November up 0.0325 @ 8.8075
Palm oil futures are at 4-month highs and soybean oil prices are near July highs
Bearish weather forecasts
NOPA crush report should show the highest June crush on record
Soybean futures held the 50% retracement of the April lows and July highs yesterday
November beans briefly tested their 20-day moving average resistance
Funds bought about 5,000 contracts yesterday

Dec CHI up 0.14 @ 5.4675, Dec KC up 0.10 @ 4.6425, Dec MPLS up 0.035 @ 5.35
US dollar breaking below recent trading range
Rains in forecast have potential to negatively impact CHI wheat crops that are still standing
Strong export demand for KC supplies lately
Dec CHI wheat is trading above the 200-day moving average resistance for the first time since May 24
KC and MPLS futures are testing their 50-day moving average resistance
Funds bought about 5,000 contracts of CHI wheat yesterday

August lives up 2.02 @ 100.77, October lives up 0.95 @ 104.02, December lives up 0.57 @ 107.72
August feeders up 1.35 @ 138.07, September feeders up 1.25 @ 138.72
Steady to higher cash trade so far this week
Beef values at lowest levels since December of 2017
Slaughter so far this week is running behind the same week last year
October lives tested their 10-day moving average support and have bounced nicely
September feeders are trading back above their upper Bollinger Band resistance level

Sam Seid