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Financials: Sept. Bonds are currently 28 points lower overnight at 136^30, down 3’16 b for the week. The 10-year note is down 9 this morning at 117’16, down1’13 for the week. 5 Year Notes are down 5 at 111’06.5, down 28 for the week. Yields have risen for the week (yields have an inverse reaction to lower instrument prices) and are now 3.38% for the 2 Year, 3.19% for the 5 Year, 3.08 for the 10 Year and 3.24% for the 30 Year Bond. The yield curve remains inverted but I ill note that the 10 Year Yield gained about 10 basis points on the 2 Year for the week. This morning Fed Chairman Powell will address the Jackson Hole Symposium and is expected to talk about raising rates to battle inflation and to give a mea culpa on how the Fed was mistaken in not recognizing the degree of the pace inflation and that it was far above 2-2,5% expected by Fed policy makers. Support of 139’16 was once again tested and broken placing support at 132’14 and resistance is now 139’16. Next week I will be quoting Dec. contracts.
Grains: Dec. Corn is 6’4 higher at 654’2, up 45 cents for the week. Nov. Beans 14’4 higher at 1445’4, up 59’0 for the week. Crop condition surveys saw another drop in the good to excellent category . Once again trends have turned higher as trade now expects a drop in yield per acre of at least 10% from year ago levels in western Iowa and other western growing areas.
Cattle: Oct. LC closed 12 lower 143.65’down 182 for the week. Oct. FC closed 122 higher yesterday at 184.25’ down 100 for the week. Due to the turnaround to higher grain prices these markets are now on the defensive. Last week I noted that the Oct.LC was in resistance. And that support was 142.60. I now will lower support to 141.60 and put resistance at 145.20-145.70. A close above 146’25 will negate the current down trend.
Silver: Oct. Silver is 2 cents higher at 19.18. Short term the trend is up. Longer term the trend is down. Support is 18.67 and resistance is 20.30. A strong dollar should limit rallies as the trade is interested in higher yields.
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