Bonds Higher, S&P's Higher, Silver Lower

Financials: June Bonds are currently up 8 at 132’15 and the 10 Yr. Notes 12 higher at 123’11. We continue to hold the long 10 Yr. Note/short Bond spread which is currently trading at 9’04 premium the Bonds. We continue to hold short biased positions in Dec. and March Eurodollars. This morning’s Unemployment Report showed an increase in non-farm payrolls of 192,000 vs. average pre-report estimates of 203,000. February’s report was revised upwards to 197,000 from 175,000. The vunemployment rate held steady at 6.7% slightly disappointing given that many economists had predicted a drop to 6.6%. I expect the Bonds to be range bound for the next couple of sessions between 131’16 and 133’08 and will treat vas a rading affair between support and resistance with no particular bias being willing to both buy breaks and sell rallies for short term trades. For the long term I remain cautiously negative.

Grains: May Corn is currently 3’0 lower at 497’0 and Dec. 1’4 lower at 500’0. May Beans1’0 higher at 1476’2 and Nov. 2’4 higher at 1206’0. May Wheat 10’0 lower at 666’0 and Dec. 2’4 lower at 693’0. We remain spread long new ccrop/short old crop in Corn, Beans and Wheat for the near term. As spring progresses weather will become a more dominant factors, expect partial planting delays.

Cattle: June LC arec currently 25 lower at 137.12 and May FC 5 higher at 180.00. We remain short June LC above the 137.00 level and will be quick to take a short term profit should the market trade below the 136.25 level. If you remain long the June Hog 116.00 put look for profit a profit taking opportunites in the 240 area.

Silver: May Silver is currently 36 cents higher at 20.16 and June Gold 16.00 higher at 1301.00. We remain long Silver. S&P's: June S&P’s are currently 8.00 highe r at 1891.00 Yesterday I sold the May 1840 puts agsinst a short position leaving us with a combination of short futures and short out of the money puts. This position is currently at a loss as we are short the futures from the low 1870’s.

Currencies: As of this writing the June Euro is currently 14 lower at 1.3698, the Swiss 20 lower at 1.1205, the Yen 12 higher at 0.9638 and the Pound 4 lower at 1.6575. We are holding short biased positions in the Euro (see Report 4/3/2014).