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E-Visor Reports: Market Watch

 
Friday, July 24, 2020
Grain futures are little changed overnight, except for wheat boasting a nickel's gain, which comes on very light volume.  The only notable feature so far comes from an active nearby corn spread that has September futures relatively weaker to start.  Wheat could extend gains if traders continue to focus on worsening crop conditions for Russia and others in Eastern Europe.  Improved weather offered to growers in Western Europe and Australia may ease some bullishness.  The daily export reporting system has been busy flashing soybean sales to China this week, but there is doubt about future deals now that political tensions may be ratcheting up again.  In retaliation for the U.S. closing China's consulate office in Houston, China announced its closure of the U.S. consulate office in the Chinese city of Chengdu.  The move is seen as somewhat of a mild reaction, but it is uncertain as to whether an additional response will follow or if new points of contention will arise. 

Highlights
* Stocks continue lower on investor worry about pandemic impact 
* Markets pricing in worry about return of stay-at-home orders
* Weather hinges on how long weekend ridging lasts, if it extends east
* Technical trade develops as fresh fundamental news limited
 
Corn
* December corn futures test resistance near $3.40
* Exports top trade guesses on Thursday sales report
* Chinese government receiving strong interest in grain auctions
* Corn futures rise on China's exchange at end of week
 
Soybeans
* Rising palm oil prices helping lend support to oil complex
* Palm supply estimates lower for major producers Malaysia and Indonesia
* Brazilian farmers said to be active forward sellers
* Brazilian real currency up against the dollar, but Argentine peso lower
 
Wheat
* Export sales 22.7 mbu last week to top expectations
* Crop prospects improve for Australia after recent showers
* Eastern Russia remains dry with chance of better rain potential next week
* Argentine growers fighting drought and freezing temps
 
Livestock
* U.S. frozen pork inventories down 25% on the year
* Returning Covid restrictions re-close restaurant lobbies
* August live cattle supported by 10-day MA under recent $103.875 high
* Cattle on Feed report this afternoon expected to show placements up 3.8%


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