Grains: Yesterday JulymBeans closed 2 cents higher, Corn 5 lower and Wheat fractionally higher. Over night Beans were 1 higher, Corn 2 lower and Wheat 2 lower. Yesterday my recommended stop against current long position in July Corn was penetrated when the market traded through the 360'0 level, putting us on the sidelines in Corn. If you remain long July Beans either take profits or continue to use a protective sell stop at 957'0. We remain long out of the money call spreads in Nov. Beans.
Cattle: Yesterday Live Cattle closed 40-110 higher depending on the contract month. Feeder Cattle closed 90-165 higher depending on the contract month supported by a mid- session break in feed grain prices. We are currently on the sidelines as far as a speculative play is concerned. Producers should continue to hold out of the money puts and once again consider selling out of the money calls on any further sharp rallies in an effort to offset the cost of put positions and to provide more price protection. If you are hedging more than 60 days out I would be looking at selling calls 3-4 strike prices above the market.
Silver: July Silver is currently 8 cents lower at 18.72. Yesterday the market retreated about 60 cents off of a new recent high in the 19.45 area. The market saw some further selling pressure is Gold put in a possible key reversal (a new contract high and a close below the previous day's low). I remain on the sidelines. If you feel this market is headed higher I offer the following recommendation: Go long the Dec. 20/22 call spread (currently about 50 cents, $2500) and sell a mini silver contract to provide a measure of protection.
S&P's: Sept. S&P's are currently 2.00 lower at 1108.50. Yesterday the market broke from recent highs in the 1129.00 area establishing resistance above the 1125.00 level. Near term support is currently the 1102.00 level. We remain short the Sept. 1140 call as a speculative play.
Currencies: As of this writing the Sept. Euro is 34 lower at 1.2294, the Swiss 32 higher at .9046, the Yen 39 higher at 1.1044 and the Pound 31 higher at 1.4790. We remain short the Euro and/or short out of the money calls in the Euro. I am going to use a protective buy stop against short Euro futures positions just above yesterday's high of 1.2477. If the market trades below the 1.2230 level either take profits or lower your buy stop to your break even level.