Financials: Mar. Bonds are currently 10 lower at 142'23 and the 10 Yr. Note 3 lower at 130'21. Continue to treat the Bonds as a trading affair between 141'10 and 143'06. We continue to hold the long 5 Yr. Note/ short 10 Yr. Note spread from the 7'15 level premium the 10 Yr. Note. This spread is currently trading at 7'14.

Grains: On Friday Beans were 12 lower, Corn unchanged and Wheat 4 lower. Over night Beans were 10 cents higher, Corn 8 higher and 11 higher. Lack of S. American precipitation and now concerns about sub soil moisture in the U.S. because of lack of snow have added a bit of upside pressure this morning. Personally I am going to delay judgement of lack of moisture in the U.S. at this time, but I am going to respect the price action. If you remain long Mar. corn either take profits or continue to use a protective sell stop in the 638'0 area. I am also looking at out of the money call spreads for July contracts above the 700'0 strike price, stay tuned.

Cattle: On Friday Feb. LC closed 62 lower at 120.42 and Mar. FC 97 lower at 1.4987. Feeder Cattle have given a minor sell signal. My bias remains negative on both Live And Feeder Cattle. Keep in mind that FC can be an expensive market to speculate in, I recommend having at least an initial risk perameter of 300 points ($1500). Producers should be taking advantage of recent price increases for hedging opportunities.

Silver: Mar. Silver is currently 42 ends higher at 29.10 and Feb. Gold 3.00 higher at 1620.00. It may be time to once again looking to the long side of the market on breaks. Think out of the money call spreads.

S&P's: Mar. S&P's are currently 1.25 higher at 1275.50. I continue to look at the market as a trading affair between the low 1260's and the low 1280's. I would be interested in your opinion: Can the U.S. equity markets decouple itself from European debt problems?

Currencies: As of this writing the Mar. Euro is 35 higher at 1.2763, the Swiss 39 higher at 1.0522, the Yen 30 higher at 1.3026 and the Pound 42 higher at 1.5456. We remain long the Mar. 1.2400 put in both the Euro and the Yen. We remain long Mar. Natural Gas.

Regards, Marc
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mnemenoff@pricegroup.com