Financials: Dec. Bonds are currently 9 lower at 139'29 and the 10 Yr. Note 3 lower at 130'03. Yields on the 10 Yr. remain near record lows just under 2.0%. This mornings Retail Sales Report showed no change from a month ago versus an expectation of up 0.3%. PPI was unchanged, ex-food and energy was up 0.1% vs. an expectation of up 0.2%. I remain on the sidelines. Support for Dec. Bonds is currently 139'10 and resistance 141'16.

Grains: Yesterday Nov. Beans closed 4 cents lower at 1391'6, Dec. Corn 22'4 cents lower at 723'0 and Dec. Wheat 25'2 lower at 702'0. Talk of the possibility of better than expected yields in the midwest pressured Corn yesterdaydespite traders who seem to have factored in lower yields because of damage from the hot, dry weather this summer. This remains to be seen. Over night Beans were 4 lower, Corn 4 lower and Wheat 2 higher. At the moment we remain long Dec. Corn and long out of the money call spreads.

Cattle: Yesterday Oct. Live Cattle closed 20 higher and Oct. Feeder Cattle 150 higher as feed grain prices retreated. Over night Oct. LC are 20 higher at 119.80 and Oct. FC 37 higher at 137.40. We remain short Oct. LC from above the 119.00 level.

Silver: Dec. silver is currently 23 cents lower at 40.96. I remain on the sidelines looking to reinstate a long position below 39.00 if the market allows.

S&P's: Dec. S&P's are currently 5.00 higher at 1170.25. I am currently on the sidelines. Support for the near term is the 1146.00 area and resistance the 1176.00-1184.00 level. Treat as a trading market between support and resistance. Personally I favor the short side on rally at this level.

Currencies: As of this writing the Dec. Euro is 8 lower at 1.3695, the Swiss 6 lower at 1.1416, the Yen 18 higher at 1.3030 and the Pound 14 lower at 1.5775. If the Euro should trade above the 1.3800 level I will once again be looking to reinstate short positions. We remain long the Oct. Yen 1.2400 put.

Regards,

Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com