Financials: Sept. Bonds are currently 14 lower and the 10 Yr. Notes 6 lower at 129'28. I still remain on the sidelines. This morning's Weekly Jobs Report showed a decline in unemployment claims of 7,000 vs. expectations of unchanged.
Grains: Yesterday beans closed 2 cents higher, Corn fractionally lower and Wheat 13 higher. This morning the Grains are called sharply higher due to a friendly Crop Report. Corn: Crop production for 2011-12, 12.914 billion bushels vs. a pre-report estimate of 13.083BB. Crop yield of 153.0 bushels per acre vs. an average estimate of 155.2. Carry out of 714 million bushels vs. estimates of 741 million bushels. Beans: Crop production of 3.056 billion bushels vs. estimates of 3.174 billion bushels. Yield of 41.4 bushels per acre vs. estimates of 42.8. Carryout of 155 million bushels vs. an estimate of 172 million bushels. We remain long out of the money call spreads in Sept. and Dec. Corn and will be looking for profit taking opportunities in Sept. and hold on to Dec.
Cattle: Yesterday Oct. Live Cattle closed about 40 lower at 117.45 and Oct. Feeder Cattle closed about 20 higher at 135.90. Since the release of the Grain Report LC are about 100 higher and FC also 25 higher. I remain a bit negative on Oct. Cattle and prefer the short side above the 119.00 level.
Silver: Sept. Silver is currently 1.18 lower at 38.14. Support remain in the 36.00 area and resistance in the 41.00 area. Dec. Gold is currently 25.00 lower at 1760.00. A new high was once again made over night at 1817.00
S&P's: Sept. S&P's are currently 3.50 higher at 1127.00. This comes after quite an active evening trade which saw a high of 1148.25 and a low of 1103.00. I am on the sidelines but favor the long side of the market below the 1100.00 level.
Currencies: As of this writing the Sept. Euro is unchanged at 1.4193, the Swiss 638 lower at 1.3100, the Yen 4 higher at 1.3036 and the Pound 31 higher at 1.6185. For these of you keeping track I am still long the Sept. Swiss 1.20 put and recommend exited one half of the position if you are holding multiple contracts. They are actually at a small profit because of a rise in volatility.
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