Live Cattle prices begin to stabilize

Financials: Sept. Bonds are currently 12 higher at 139’27, 10 Yr. Notes 5.5 higher at 126’10 and the 5 Yr. Note 2.5 higher at 119’28.2. Weekly Jobless Claims were up by 21,000 vs. expectations of an increase of 5,000. The long 10 Yr./short Bond spread is currently at 13’16 (we are still in this trade) and has traded as low as 12’26 and as high at 13’21 over the last few sessions. I am also once again watching the long June 2015/short June 2017 Eurodollar spread currently trading at 1.85 premium the June 2015. I am willing to do this spread below the 182 level with a 16 point ($400) risk.

Grains: Dec. Corn is currently fractionally lower at 369’2, Nov. Beans 1’0 higher at 1047’6 and Dec. Wheat 1’0 higher at 546’4. After the Grain Report Nov. Beans failed to hold the 1055’0 support level, Dec. Corn made new lows but has since rallied back to slightly above pre-report levels. I wish I had a reason to be involved but at the moment I am not seeing opportunity.

Cattle: Oct. LC are currently slightly higher at 146.60 and Oct. FC a few ticks higher at 212.77. We have been anticipating a break in this market and have now had a substantial retreat. I am now looking for trading opportunities from both sides of the market. I will be a buyer in Oct. LC below 145.00 and a seller above 150.00.

Silver: Sept. Silver is currently 2 cents higher at 19.87 and Dec. Gold 3.00 lower at 1310.00. We continue to hold our original long Silver position but have been stopped out of contracts purchased in the last week as the market traded through the 19.87 level on the downside.

S&P's: Sept. S&P’s are slightly lower at 1944.25. We were stop out of recent short positions when the market traded above the 1942.00 level. I am once again initianting a combination trade of short futures and short the Sept. 1900 put (currently at 14.50).

Currencies: The Sept. Euro is currently 19 higher at 1.3389. We remain short and have lowered our buy stop to the 1.3492 level.