Financials: Sept. Bonds are currently 1'04 higher at 149'07 and the 10 Yr. Note 17 higher at 133'17. Once again the markets are fearing the repercussions of European Soveriegn Debt seeking safety in U.S. Treasuries. An E.U. summit meeting later this week may either help or harm these perceptions putting me on the sidelines for the moment. Technically the market now has a wider than normal spread between suppport and resistance. Support is currently 147'26 and resistance 150'04.
Grains: This morning July Corn is trading 20 cents higher at 610'0 and new crop Dec. Corn27 higher at 581'0. Beans are 36'0 higher at 1478'4 and July Wheat 18'0 higher at 1692.00. Lack of percipitation over the weekend have boosted these markets over night. Deferred contracts are now above last weeks highs but approaching longer term resistance. Weekly Crop Progress Report this afternoon. If you bought the break in Corn last week I recommend taking profits.
Cattle: Friday's Cattle on Feed Report showed the following: On Feed 102% of a year ago vs. average expectations of 100.7%. Placements 115% vs. expectations of 114.2%. Marketed 101% vs. 105%. The marketing number was a disappointment. Given what Corn is doing this morning and a stronger Dollar I would expect a lower opening. Support remains in the 114.50 area for Aug. LC, an area where I am comfortable trading from the long side of the market.
Silver: July Silver is currently 4 cents higer at 26.70 and Aug. Gold 4.00 higher at 1571.00. We continue to hold a small long position in Silver.
S&P's: Sept. S&P's are currently 17.00 lower at 1310.00. Fear of European Soveriegn Debt is once again pressuring the market. If you went short last week (see last Thursday's Report) either take profits or use a close protective stop.
Currencies: As of this writing the sept. Euro is 72 lower at 1.2500, the Swiss 60 lower at 1.0423, the Yen 132 higher at 1.2576 and the Pound 27 lower at 1.5577. Trends have turned down of European currencies and once again to the upside for the Dollar and the Yen. I am staying away from futures and looking towards out of the money puts on the Euro.
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