Financials: Dec. Bonds are currently 1'04 lower at 138'24 and the 10 Yr. Notes 15 lower at 127'25. My bias remains on the short side of the market now that we are trading under the 139'26 level in the Bonds. Treat as a trading market between 138'00 and 141'15.
Grains: Yesterday Beans closed 58 cents higher, Corn up the 40 cent limit and Wheat 49 higher as the market rallied on rumors that Russia will limit exports on Corn and Wheat. This morns Crop Production Report showed the following: Corn production is estimated 12.433 billion bushels vs. pre-report estimate of 12.492. Yield per acre was 148.1 vs. a pre-report average estimate of 148.9 bushels per acre. The figures are certainly friendly but given the recent price advance the early call is about 10 cents lower. We remain long out of the money calls and/or call spreads. Soybean production was estimated at 3.060 billion bushels vs. a pre-report estimate of 3.094. Carryout numbers were a bit negative for Corn and positive for Beans. The opening call for Beans is currently 10-20 cents higher.
Cattle: Yesterday Dec. cattle closed 127 higher at 121.625 and Nov. Feeder Cattle unchanged at 143.125. My recommended protective buy stop at 121.90 against short positions from above the 122.00 level has been hit. If you remain long out of the money puts I recommend rolling them down to a lower strike price. If you remain short out of the money calls cover positions on a break.
Silver: Sept. Silver is currently 44 cents higher at 32.43. We continue to hold a small long position. If you remain long term bullish I recommend buying out of the money calls and/or call spreads for March 2012 expiration.
S&P's: Dec. s&P's are currently 11.00 higher at 1200.50. Over night we were stopped out of a recent short position in the 1203.00 area. I remain negative at current levels and will once again try the short side of the market.
Currencies: As of this writing the Dec. Euro is 106 higher at 1.3760, the Swiss 93 higher at 1.1131, the Yen 121 lower at 1.2938 and the Pound 134 higher at 1.5714. Over night the Euro gave us a selling opportunity at the 1.3775 level and we are now short. We remain long the Dec. Yen 1.2400 put which is slightly in our favor at the moment.
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