Financials: June Bonds are currently 8 higher at 140'27 and the 10 Yr. Notes 5 higher at 131'09. We remain short the June 142'00/140'00 call spread which is now against us by about $300.00. Support for June Bonds for the near term is currently 139'14 with resistance at 141'03. I continue to hold a negative bias to these markets at current levels.
Grains: Yesterday May Corn closed 9'2 lower at 649'0, July Corn 11'0 lower at 641'2, May Beans 3'0 lower at 1431'0 and May Wheat 4'4 higher at 643'0. Over night Corn was slightly higher, Beans 10'0 higher and Wheat 4'0 higher. This mornings USDA Supply/Demand Report showed the following: U.S. carryout for Corn was 801 milion bushels vs. analysts estimates of 717 million bushels, Wheat 793 vs. 796, Beans 250 vs.246 million bushels. World Carryover: Corn 122.7, Beans 55.5 and Wheat 206.3. I feel the U.S. numbers were slightly negative for Corn and friendly for Wheat and Beans. World numbers were somewhat friendly across the board. If you remain short either May or July Corn I recommend taking profits given the recent break. The early calls are 5 lower in Corn and steady to higher in Beans and Wheat.
Cattle: This morning June LC is trading 20 higher at 116.00 and May FC 60 higher at 149.10. As mentioned in previous report my downside objectives have been met and I am now a buyer on breaks for short term trading only.
Silver: May Silver is currently 14 cents higher at 31.65 and June Gold1.00 higher at 1645.00. I am now looking to the long side of these markets on sharp breaks (80 cents in Silver, 50 dollars in Gold).
S&P's: June S&P's are currently 3.00 higher at 1378.00. Yesterday we took profits on short call spreads. I am still a bit negative to this market but cannot recommend the short side of the market at current levels. Treat as a trading affair between 1368.00 and 1392.00.
Currencies: As of this writing the June Euro is currently 25 lower at1.3102, the Swiss 16 lower at 1.0911, the Yen 83 higher at 1.2340 and the Pound 64 lower at 1.5837. I am on the sidelines.
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