The estimate for Friday’s jobs report is for an increase in Nonfarm Payrolls of 300,000
|Financials: June Bonds are currently 13 lower at 139’24, down 26 points for the week. 10 Year Notes are 8 lower at 118’29, down 14 for the week. 5 Year Notes are 6 lower at 112’21.75, down 6 for the week. The yield curve slightly widened this week with the longer dated treasuries gaining in yield over the shorter term, yields are currently as follows: 2 Year 2.67%, 5 Year 2.94%, 10 Year 2.96% and the 30 Year 3.04%. Yesterday the FOMC raised rates by .50% as expected. However, in comments expressed by Fed Chairman Powell a rate hike of 0.75% down the road is off thee table. He also noted that the Fed Balance sheet will be sold off of inventory by 47.5 Billion per month by at least the next 2 months compromising 17.5 Billion of Mortgage Bonds and 30 Billion dollars of treasuries. These statements were considered less hawkish than expected noting that the economy is strong despite inflationary pressure which can still increase temporarily from current levels due in part to the Russia/Ukraine conflict. Estimate for Friday’s Jobs Report is for an increase in non-farm payrolls of 300,000. Support for June Bonds is 138’14 and resistance 142’24.
Grains: Dec. Corn is up 3”0 at 739’2, down 13’6 for the week. Nov. Beas are up 8’0 at 1494’4, down 78’0 for the week. The old adage of “Rain makes Grain” came into play over the last week. May Corn still appears poised to test all time high of 838’0. That being said I still like long new crop/sort old crop spreads.
Cattle: June LC are currently 134.825, slightly lower for the week. Aug LC are at 137.075, up about 1.00 for the week and Aug. FC at 176.200, up 7.35 for the week. Over all the trend remains down. I will note that FC gained on Lc for the week as feed grain prices eased. Support for June LC is currently 132,75 and resistance 136.30.
Silver: July Silver is 65 cents higher at 23.05, down about 5 cent for the week, however this is almost 1.00 dollar off the lows. Support is now 22.45 and resistance 24.40. Short term trend has turned up.
S&P: June S&P’s are 50.00 lower at 4245.00, 30.00 higher for the week after yesterday’s rally. Tempered hawkish statements by the Fed Chairman seems to have sparked a 3.0% rally in most Indices. Support is 4130.00 and resistance 4330.00.
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