TFM Midday Update 7-16-20

CORN

September up 0.055 @ 3.315, December up 0.05 @ 3.39, March up 0.05 @ 3.495
6-10 day forecasts are still hot and wet, but 8-14 day forecasts begin to dry out
Strong demand tone from China and South Korea
US sold 981,100 tonnes of corn for the week ending July 9, up sharply from last week and the previous 4-week average
December corn is retesting the 50-day moving average resistance level
Gap created on Monday is still open
Funds were net even in corn yesterday

August up 0.0825 @ 8.945, September up 0.0925 @ 8.90, November up 0.0925 @ 8.92
Longer range forecasts are starting to dry out, and weather risk is appearing for August
Rumors that China purchased at least 5 cargoes of US beans yesterday
Weakness in US dollar
US sold 313,000 tonnes of beans of the week ending July 9, down 67% from last week and down 46% from the previous 4-week average
November beans held their 20-day moving average support this morning and are now testing their 10-day moving average resistance
Gap from Monday has been filled
Funds bought about 7,000 contracts of beans yesterday

December CHI wheat down 0.0725 @ 5.4625, December KC wheat down 0.0875 @ 4.62, December KC wheat down 0.0775 @ 5.3275
Rumors that China was a big buyer of soft red winter wheat lately
US dollar looking soft, possible downside breakout
Rallying world export prices
Dec CHI wheat is testing the 200-day moving average support level, stochastics are still overbought
Dec KC wheat has fallen back below the 50-day moving average level after making its first close above that level yesterday since May 8
Dec MPLS futures fell back below the 50-day moving average support and have also fallen through the 10 and 20-day moving average support levels
Funds bought about 9,000 contracts of CHI wheat yesterday

August lives up 0.60 @ 101.82, October lives up 1.07 @ 105.62, December lives up 1.10 @ 109.30
August feeders up 1.62 @ 141.05, September feeders up 1.85 @ 141.37
Cash trade trying to creep higher
Beef values are still at their lowest levels since December of 2017
Slaughter this week is running behind last week and the same week last year
October lives are trading at their highest levels since March 6
September feeders are testing their 200-day moving average resistance

August up 3.10 @ 53.22, October up 2.32 @ 51.75, December up 1.82 @ 52.82
Cash Index is at its highest point since June 18
Highest carcass cutout value since July 10
Average weights increased a bit last week. but hot temps could pull weights lower
August hogs are trading at their highest prices since June 19
October hogs are trading above their 50-day moving average for the first time since June 2, and a close above would be the first since June 9

Sam Seid