Financials: Sept. Bonds are currently 8 lower at 136'22 and the 10 Yr. Notes 1 lower at 129'27. I continue to remain on the sidelines. Support for sept. Bonds remains at 135'01 and resistance at 138'22.

Grains: On Friday Beans closed 3 cents higher, Corn about unchanged and Wheat 1 higher. Over night Beans were 10 cents higher, Corn 4 higher and Wheat 10 higher. Over night the contract high of 722'6 was tested on Dec. Corn (Sept. Corn is well below the contract high of 765'0, currently at 705'4). We remain long call spreads in Sept. and/or Dec. Corn. If you are in Sept. look for profit taking opportunities as these options expire Aug. 26th. Here's a trade to consider: Buy 1 Mar. 2012 Corn 750'0 call/sell 2 Mar. corn 850'0 calls for a credit of 2 cents or better.

Cattle: On Friday Oct. Live Cattle closed 90 higher at 120.45 and Oct. Feeder Cattle 135 higher at 138.70. I currently prefer the short side of these markets above 119.00 in Oct. LC and above 140.00 in Feeder Cattle. I am closely watching the Australian dollar which has weakened against the U.S. dollar in the last 2 weeks. I feel if the Dollar remains strong against the Aussie, export demand could soften as Asian countries will find Aussie beef more economical. Stay tuned.

Silver: Sept. Silver is currently 9 cents higher at 39.20. Terat as a trading market between 36.00 and 41.00. Dec. Gold is currently 3.00 lower at 1739.00.

S&P's: Sept. S&P's are currently 7.50 higher at 1184.25. Support is currently the 1146.00-1153.00 area. Resistance is currently 1182.00-1193.00. I do not feel we will see the volatility that we saw last week, but do feel the trend is down and prefer the short side of the market on rallies.

Currencies: As of this writing the Sept. Euro is 144 higher at 1.4382, the Swiss 190 lower at 1.2710, the Yen 23 higher at 1.3052 and the Pound 65 higher at 1.6339. Continued intervention against the Swiss in favor of the Euro and the Dollar has helped boost our remaining position in the Sept. Swiss 1.20 puts to 75 points. Take profits.

Regards,

Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com