Financials: Mar. Bonds are currently 1'09 higher at 144'23 and the 10 Yr. Note 13 higher at 132'04. Greece and Portugal are once again in the news as talks will take place later in the week on how to resolve several issues including how much of a haircut Greek bondholders will have to take. Long term resistance on the Bonds is once again the 145'16-146'00 area. On Friday we once again put on the long 5 Yr. Note / short 10 Yr. Note spread above the 7'22 level premium the 10 Yr. Note. This morning the spread is against us, trading at 8'03.

Grains: Over night Mar. Beans traded 14'2 lower at 1204'6, Mar. Corn 7'6 lower at 634'0 and Mar. Wheat 5'6 lower at 641'4. We are currently on the sidelines. If Mar. Corn trades below 523'0 I will once again be interested in the long side of the market.

Cattle: Friday'a Cattle Inventory Report showed a 2.0% decline in hers numbers 90.8 million head, 0.5% below expectations. This is the lowest number in nearly 60 years. Current near record prices indicate and this is not a surprise that supllies are tight Signs that rising beef, live and feeder cattle prices are encouraging ranchers to increase herds are evidenced by the cows kept for replacement (female cattle retained for breeding) were up 1.4%, analyst expected this number to fall. We are currently short Mar, Fc with a protective buy stop at 155.65. Early calls are for Live Cattle to open lower.

Silver: Mar. Silver is currently 30 cents lower at 33.49 and Apr. Gold 2.00 lower at 1733.00. We do not have a futures position at this time.

S&P's: Renewal of European debt concerns have global equity markets lower this morning with the S&P's trading 12.00 lower at 1300.50, below Friday's support of 1306.50. Near term support is now 1293.00 with resistance at 1318.00. I favor the short side of the market above the 1311.00 level.

Currencies: As of this writing the Mar. Euro is trading 100 lower at 1.3107, the Swiss 70 lower at 1.0890, the Yen40 higher at 1.3083 and the Pound 42 lower at 1.5674. We remain long out of the money puts in the Yen and Euro. Regards, Marc 888.908.4310 | 312.264.4310 mnemenoff@pricegroup.com