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Financials: June Bonds are currently 9 higher at 149’23, up 1’07 for the week. June 10 Year Notes are up 7 at 122’17, up 5.5 for the week and the 5 Year Note is up 5 at 114’23, down 4 for the week. Yields are slightly lower for the week, which is expected given the higher prices on treasuries. That being said, the yield curve continues to flatten. The spread between the 2 year and 10 year Notes went to even money for a brief period and is now at 4 basis points. Yields are as follows: 2 Year 2.29%, 5 Year 2.41% 10 Year 2.33% and the 30 Year Bond 2.48. A negative yield curve (short term yielding more than longer dated treasuries) has been a symptom of recession in the past. Support for June Bonds is 147’20 and resistance151’24’ I still expect a 0.50% raise in rates by the Feb. by June.
Grains: May Corn is currently 740’4 up 2’4 over night and down 14’2 for the week. May Beans are3’0 higher at 1667’0, down 33’0 for the week. These markets have been headline driven the last few sessions because of the possibility of troop draw back by the Russians. This morning we have a stocks and planting intention reports. I am expecting a 1-2 million acre drop in Corn and a slight increase in Beans. Support for May Corn is 693’0 and for May Beans 1620’0.
Cattle: April LC are 22 lower at 139.95 about unchanged for the week, April FC are 55 lower at 163.12 up 40 for the week.
Cash Cattle appear to be stuck in a range of 1.38-142. Boxed Beef demand has been brisk despite large inventory.
I still favor the long LC/short FC spread. Support for April LC remains at 138.10
Silver: May Silver is currently 11 cents higher at 25’23, down 63 cents for the week. Support is 24.40 and resistance 26.60. Short term trend is now down.
S&P: June S&P’s are 9,50 lower at 4587.00, up 130.00 for the week. This market may have technically put in a near term top in the 4635.00 area. Support is 4485.00.
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