Financials: June Bonds are currently 17 lower at 141'11 and the 10 Yr. Note 9 lower at 131'13. U.S. March Manufacturing Output was down 0.2% as expected, Capacity Utilization down 0.1% as expected. March Industrial Production was unchanged vs. expectations of +0.2%. Comments from the IMF that economies were improving have pressured Bonds this morning taking away some of the flight to safety factor). We remain short the June Bond 142'00/140'00 call spread.
Grains: Over night July Corn traded fractionally higher at 613'4, July Beans 7'4 higher at 1431'4 and July Wheat 2'6 higher at 624'0. Of note: Wheat is once again at a slight discount to Corn. I am a small buyer on breaks in July Corn with a 10 cent risk for short term trades.
Cattle: June LC is currently 32 higher at 116.52 and May FC 107 higher at 153.00. As mentioned over the last few sessions I feel these markets may have put in a bottom and I recommend the long side of June LC on breaks to the 115.50 level. That being said, I feel the upside is limited at this time. As for FC I also believe a bottom may be in and demand should improve due to the recent break in feed grains. Again I feel that the upside is limited.
Silver: May Silver is currently 25 cents higher at 31.70 and June Gold 5.00 lower at 1644.00. To be honest I can't get excited by either of these markets at current levels.
S&P's: June S&P's are currently 10.00 higher at 1374.00. Continue to treat as a trading affair between 1363.00 and 1383.00.
Currencies: As of this writing the June Euro is trading 12 lower at 1.3126, the Swiss
12 lower at 1.0928, the Yen 32 lower at 1.2398 and the Pound 28 higher at 1.5926. I
remain on the sidelines.
Regards,
Marc
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