Financials: Dec. Bonds are currently 21 higher at 119'05. We continue to hold the combination of short Dec. Bonds and short the Jan. Bond 115'00 put. Support for Dec. Bonds is currently 117'20 and resistance 119'21.
Grains: Yesterday Beans were 17 cents higher, Corn 19 higher and Wheat 22 higher. Over night Beans were a penny lower, Corn 3 lower and Wheat 4 lower. This morning's crop production report showed: Corn 12.921 billion bushels versus an average pre-report estimate of 12.995. The yield per acre was 162.9 bushels versus an estimate of 163.7. Beans came in at 3.319 billion bushels versus an estimate of 3.269. The yield per acre was 43.3 bushels versus an estimate 42.7. The immediate trader reaction is slightly friendly to Corn and a bit negative for Beans. We remain long Dec. Corn and Jan. Beans. The early call is 2-4 higher in Corn and 5-10 lower for Beans. I recommend taking the short term profit in Corn if the market opens higher or raising your sell stop to the 378'0 level. I continue to recommend using a protective sell stop in Jan. Beans 25 cents below your entry level. If Jan. Beans trade above 986'0 raise your sell stop to your break even level or take profits.
Cattle: Yesterday Dec. Cattle closed 5 lower at 84.95. The long Dec. /short Apr. spread lost 32 points closing at 4.32. We continue to hold this spread. Support is just below the 84.00 level.
Silver: Dec. Silver is currently 5 cents lower at 17.43 we remain long out of the money call spreads.
S&P's: Dec. S&P's are currently 3.00 lower at 1089.25. I remain on the sidelines.
Currencies: As of this writing the Dec. Euro is 23 lower at 1.4973, the Swiss 20 lower at .9901, the Yen 23 higher at 1.1135 and the Pound 52 lower at 1.6687. We remain long out of the money puts in the Yen and long out of the money put spreads in the Pound. The Dollar Index is currently 6 higher at 75.20. I feel the Dollar is going to find support in the 74.00 area and caution against being an aggressive short against the Dollar at current levels.