Financials: Dec. Bonds are currently 1'22 higher at 142'15 and the 10 Yr. Note 21 higher at 130'22. Italian debt and the looming resignation of Italian Prime Minister Berlusconi has pushed the U.S. Bonds up once again in a flight to safety as Italian 10 Yr. Notes dropped to point where they now yield in excess of 7.0%. My bias remains on the short side o the market, but I will for my price of 142'26 or higher. Support is currently 140'06 with resistance at 143'04.

Grains: Yesterday Beans were 3 cents higher, Corn 5 higher and Wheat 18 higher. Over night Beans were 8 lower, Corn 1 lower and Wheat 7 lower. This mornings Crop Production Report: Corn 12.31o billion bushels vs. an average estimate 12.402. Beans 3.046 vs. an average estimate of 3.059. Yield per acre: Corn 146.7 bushels per acre vs. the average estimate of 147.9. Beans 41.3 bushels per acre vs. average estimates of 41.5. Carryout: Corn 843 million bushels vs an average estimate of 801 million bushels. Beans 195 million bushels vs. estimates of 185 million bushels. On the surface the crop production looks friendly for Corn, but given the carryout for Corn and Beans I would have to surmise that export demand is tepid at the moment. Early morning calls are lower for Beans and mixed for Corn. We remain long out of the money calls and/or call spreads in Dec. Corn. We are on the sidelines in futures.

Cattle: Yesterday Live and Feeder Cattle closed moderately lower. My bias remains negative at current prices.

Silver: Dec. Silver is currently 73 cents lower at 34.42. If you remain bullish I recommend being long out of the money calls and/or call spreads for March 2012 expiration

S&P's: Dec. S&P's are currently 32.00 lower at 1241.00. European debt still dominates this market. If you went short Dec. S&P's above the 1265.00 level, take the short term profit. If you went short the Dec. 1280 call above the 32.00 level, cover at 24.00 or better. Support remains in the 1235.00 area.

Currencies: As of this writing the Dec. Euro is 281 lower at 1.3560, the Swiss 141 lower at 1.1048, the Yen unchanged at 1.2878 and the Pound 204 lower at 1.5909. Despite my negative bias on the Euro, I have admittedly missed the boat this morning, I hope you fared better. We remain long out of the money puts in the Yen. Italian debt remains the 800 pound gorilla.

Regards,
Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com