Grains: Yesterday Beans were 14 cents higher to 7 lower with the old crop continuing to gain on the new crop. Corn was 7 lower and Wheat 5 lower. Over night Beans were 4 higher, Corn 4 higher and Wheat 3 higher. This mornings Acreage and Ending Stocks report was considered friendly for Beans and negative for Corn and Wheat. June 1st. stocks for Corn 4.266 Billion Bushels, Beans 0.597 and Wheat 0.667. Corn acreage is estimated at 87.05 million acres, Beans 77.483 acres. We remain long Dec. Corn with a protective sell stop at 388'0. The early calls are: Beans 10 higher, Corn 10 lower and Wheat 5 lower.

Cattle: Yesterday Live Cattle closed sharply higher with the Aug. contract closing up the 3.00 limit at 85.40. The market was pushed higher due to short covering, Commodity Fund buying, and a firm cash market. I feel this market has finally broken out to the upside. I recommend going long on any sharp breaks.

Silver: Sept. Silver is currently unchanged at 13.98. We remain long with a protective sell stop $1.00 below entry level. If the market trades above the 14.45 level, raise your sell stop to the 13.45 level.
S&P's: Sept. S&P's are currently 3.00 higher at 924.75. I still do not have a strong opinion on this market at current levels. Near term support is 906.00 and near term resistance 926.00. Treat as a trading market between support and resistance.

Currencies: As of this writing the Sept. Euro is 16 higher at 1.4097, the Swiss 6 lower, the Yen 20 lower and the Pound 38 lower at 1.6534. Over night the Pound traded as high as 1.6742. I continue to like the short side of the Pound in the 1.6600-1.6700 area. The Sept. Dollar Index is currently 3 lower at 80.08.

Financials: Bonds are currently 2 lower at 118'16, the 10 Yr. Notes4 lower, the 5 Yr. Notes 4 lower and the 2 Yr. Notes 2 lower. Dec. Eurodollars are 2 lower at 99.075. We continue to hold short positions in Dec. Eurodollars and Sept. Bonds. Both of these positions are currently against us. Admittedly my timing is a bit off on these trades but I still feel these markets will work lower over time.