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Financials: Sept. Bonds are currently 10 lower at 145’05, 10 Yr. Notes 6 lower at 120’02 and 5 Yr. Notes 4 lower at 113’13.7. All things considered a rather lackluster week in treasuries, with the market near the weekly lows after trading in a tight range. Given the friendly Jobs Report which should have had a negative effect on Bond prices, the market held week ago levels as the market reaction to the Jobs number was countered by a flight to safety caused by the possibility of a “trade war” as potential tariffs were announced for a variety of Chinese products. I remain long out of the money puts in the 10 Yr. Notes and will be a seller of futures if the Bonds rally to the 146’24 level.
Grains: Sept. Corn is currently 2’4 higher at 342’$, Sept. Beans 2’4 higher at 840’4 and Wheat 2’6 higher at 474’4, all lower for the week. Near perfect growing conditions, an increase year over year in planted acreage and the fear of imposed tariff’s on grains by China and Europe has been a perfect storm for lower prices. All that being said we are long Corn a few pennies above current prices. Crop Production Report at 11:00am Central time today.
Cattle: Live and Feeder Cattle broke sharply over the last couple of sessions probably more in sympathy with an across the board break in most commodity markets in response to announced additional tariffs rather than a dramatic change in fundamentals. That being said we should start to see an increase in marketing’s. If you remain short Aug. LC from above the 106.75 level either take profits or use a protective buy stop at 105.40. If the market trades below 102.65 lower you stop to the 104.50 level. This market has the possibility of trading below 100.00.
Silver: Sept. Silver is currently 10 cents higher at 15.91. We tried adding to our core long position during the last week only to get stopped out of those extra contracts when the market traded below 15.80 over night.
S&P’s: Sept. S&P’s are currently 14.00 higher at 2788.00. This market has regained most of yesterday’s losses. Treat as a trading affair between 2755.00 and 2796.00.
Currencies: I remain on the sidelines.