TFM Midday Update 6-17-20

CORN

July down 0.0225 @ 3.2675, September down 0.0225 @ 3.32, December down 0.02 @ 3.4075
Conflicting weather forecasts for the weekend
Northern and western parts of Corn Belt getting progressively drier
July corn closed at the 10-day moving average support level yesterday and opened below this morning
July futures are currently testing the 20-day moving average support level, and a close below would be the first since May 14
Funds sold about 1,000 contracts yesterday

July down 0.005 @ 8.665, August down 0.015 @ 8.6675, November down 0.0075 @ 8.7275
Meal futures choppy, oil futures still rallying with support from Palm Oil markets
Conditions in the Dakotas, Nebraska and parts of Minnesota are quickly declining
Precipitation totals and coverage this weekend will be key in driving direction until June acreage report
Soybean futures have been testing the 100-day moving average resistance levels for the past week or so and have not yet broken through
July beans opened below the 10-day moving average support level this morning, and a close below would be the first since June 1
Overbought stochastics
Funds sold about 2,000 contracts yesterday

July CHI down 0.08 @ 4.88, July KC down 0.0675 @ 4.315, July MPLS down 0.02 @ 5.13
Improving weather and conditions for European and Russian crops
Russia elected not to continue with an export quota for the rest of 2020
Dry weather in the Plains will aid KC harvest, but spotty moisture in the Dakotas may impact Spring Wheat conditions
July CHI futures at lowest prices since September, July KC wheat at lowest levels since March
Spring wheat futures are consolidating within yesterday’s trading range
Funds sold about 7,000 contracts of CHI wheat yesterday

June lives down 0.10, August lives down 0.32 @ 96.45, October lives down 0.17 @ 99.57
August feeders up 0.42 @ 133.30, September feeders up 0.35 @ 134.80
Increasing slaughter and weights will add to beef supplies
Cash cattle markets are drifting lower so far this week
Beef prices are nearly in line with the same time last year
August lives testing 10-day moving average after opening below
Choppy trend sideways still intact
August feeders trading just off session-highs and are testing the 100-day moving average resistance

July down 0.60 @ 49.05, August down 0.10 @ 52.92, October down 0.47 @ 51.25
Cash index still trending lower though momentum may be waning
Pork prices choppy to lower
China pig inventories are increasing but spot pig prices are also rallying
July made new contract lows this morning but is trading in the upper end of the day’s range and back within the Bollinger Band range
August and October are pushing to new session highs

Bryan Doherty