TFM Midday Update 7-8-20

CORN

  • July down 0.005 @ 3.445, September down 0.0125 @ 3.4225, December down 0.015 @ 3.5075
  • Weather forecasts are showing some rain and hot temperatures
  • China production could drop up to 4% this year due to lower acres and Armyworm issues
  • China corn prices are near 5-year highs
  • Dec corn traded as low as 3.475 this morning but have since rebounded back above their 100-day moving average support level
  • Stochastics are close to overbought levels

SOYBEANS

  • July down 0.01 @ 8.9425, August down 0.02 @ 8.9475, November down 0.02 @ 9.005
  • Tightening feed grain supplies in China
  • Less threatening weather forecasts, with rains seen in different parts of the country for the next two weeks
  • November beans fell back within their Bollinger Band range this morning
  • Nov futures are still overbought according to stochastics
  • Buyers have pushed prices back into the upper third of the day’s range

WHEAT

  • September CHI up 0.14 @ 5.095, Sep KC up 0.1275 @ 4.5325, Sep MPLS up 0.0425 @ 5.1725
  • Lower French and Russian crop estimates published lately
  • European futures are at their highest since early June
  • Egypt bought wheat in a tender from Russia yesterday
  • CHI futures have surged through the 20 and 50-day moving average resistance, KC futures have broken above their 20-day resistance
  • Spring wheat futures are trading above their 10-day moving average for the first time since June 22

CATTLE

  • August lives down 0.80 @ 99.20, October lives down 0.92 @ 103.25, Dec lives down 0.72 @ 106.27
  • August feeders down 1.42 @ 133.50, September feeders down 1.12 @ 135.20
  • Lowest beef values since February
  • Early week cash trade steady with the end of last week
  • Weekly slaughter running behind last week
  • August lives fell back within their Bollinger Band range, momentum possibly rolling over

HOGS

  • July down 0.67 @ 43.85, August down 0.35 @ 48.52, October up 0.22 @ 48.85
  • Cash Index slightly lower this morning
  • Pork values are at their lowest levels since mid April
  • China will be auctioning more pork put of state reserves today as domestic prices surge
  • August made a third unsuccessful test of the 10-day moving average resistance level this morning

Author

Sam Seid

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