Marc Nemenoff
PRICE Futures Group
Financials: Sept. Bonds are currently 5 lower at 140’23, up 1’06 for the week. Sept. 10 Year notes up 4.5 at 120’12, up 1’00 since my last “report” on May 12th. Earlier this week we had the release of the FOMC minutes which had little impact on the markets. The minutes indicated the possibility that the next two rate hikes will be 0.5% before returning to 0.25% as it completes a target of 3.0% for Fed Funds. They also reiterated the mantra that actions by the Fed will be data dependent. Support for Sept. Bonds is currently 139’04 and resistance 142’05.
Grains: Dec. Corn is 8’6 lower at 714’0, down 23 cents since my last report. Nov. Beans are1’2 higher at1514’4, down 8 cents over the same period. I still like the long new crop/short old crop spreads. With the current situation in Ukraine/ Russia I suspect supplies will be tight later this year.
Cattle: Aug. LC are currently unchanged at 132.50 and Aug.FC22 higher at 168.17. As feed grain prices retreated LC and FC found some support. All things considered I still feel the long LC/ short FC spread should continue to narrow. Support for Aug. Live Cattle is 131.40 and resistance 134.10.
Silver: July Silver is 5 cents higher 21.92. Long term trend remains down. That being said this market could be forming a bottom below the 21.50 level.
S&P: June S&P’s are 37.50 higher at 40.14, up 140.00 over the last 2 weeks. The lack of any surprises in the FOMC minutes added some upside pressure to the equity markets. Trend remains down as the market watches the 3837.00 level which if broken will represent a 20% decline from the yearly high. Many analysts feel a decline of 20% represents a bear market. Support is currently 3837.00 and resistance 4050.00.
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