Financials: Dec. Bonds are currently 5 lower at 141'05 and the 10 Yr. Note 5 lower at 130'23. I continue to remain on the sidelines.

Grains: On Friday Beans closed 9 higher, Corn 2 higher and Wheat 8 lower. Over night Beans were 2 lower, Corn 6 lower and Wheat 4 lower. The Crop Report showed the following: Corn production, 12.497 bushels versus a pre-report average estimate of 12.554 billion bushels. Yield per acre was 148.1 vs. 148.8. Carryout was 672 million bushels vs. estimates of 636 million. The early call is 10-15 cents higher which will probably change as the morning progresses. The question will be, will poor demand as evidenced by the higher than expected carryout out weigh the bullishness of the production figures. We are currently biased to the long side of the market in Dec. Corn from below the 735'0 level. Soybean production was 3.085 billion bushels vs. estimates of 3.025 billion bushels. Yield per acre 41.8 bushels per acre vs. 41.0. Carry out 165 million bushels vs. 152. The early call is 10 lower as all figures were somewhat negative as compared to pre-report estimates.

Cattle: The early call in Live and Feeder Cattle is slightly higher. We are currently short Oct. from above the 119.00 level.

Silver: Dec. Silver is currently 70 cents lower at 40.91. I remain on the sidelines awaiting a break below the 39.00 level to reinstate long positions.

S&P's: Dec. S&P's are currently 14.00 lower at 1138.50. My downside objectives have been reached for the moment and I recommend covering all short positions. Further news of problems with European Sovereign debt have pressured the market for the last few sessions.

Currencies: As of this writing the Dec. Euro is about unchanged at 1.3650, the Swiss 14 higher at 1.1357, the Yen 48 higher at 1.2975 and the Pound36 lower at 1.5825. We have covered all short biased positions in the Euro feeling that the market is somewhat oversold despite the continued negative news on European sovereign debt. We remain long the Oct. Yen 1.24 put.

Regards,

Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com