Yellen scheduled to speak today. Cattle spreads hit objectives

Financials: June Bonds are currently 3 higher at 163’20, 10 Yr. Notes 1 higher at 129’14, 5 Yr. Notes 1 higher 120’12.5 and June 2017 Eurodollars fractionally higher at 98.93. Recent position reports suggest that Hedge Funds have piled into treasuries on the long side of the market in anticipation of fewer rate hikes than originally anticipated last December. Being ever the contrarian it makes me a bit nervous when market participation is so one sided. Perhaps todays speech by Fed Chairman Yellen will shed a bit more light on current Fed policy. I remain patiently on the sidelines for an opportunity to sell June 2017 Eurodollars in the 99.10 area.

Grains: May Corn is currently 0’4 lower at 370’0, Beans 1’0 higher at 910’0 and Wheat 2’2 higher at 473’2. I am on the sidelines but will be a buyer in Beans below 893’0 with an initial risk of 30 cents.

Cattle: Yesterday Live and Feeder Cattle once again contiued to work lower. The long June or August/short Apr. LC spread narrowed considerably with Apr. losing 92 points to the June and 130 points to the Aug. Take profits on these spreads and stand aside. Next week after first notice day for Apr. deliveries we will start looking to the long side of the market.

Silver: May Silver is currently 2 cents lower at 15.17 and June Gold 1.00 lower at 1221.00. We remain long Silver and have once again gone long Gold.

S&P's: June S&P’s are currently 4.50 lower at 2023.50. I am once again on the short side of the market and will sell rallies in the 2032.00 area with an initial risk of the 2055.00 level. If the market trades below 2019.00 I will lower stops to the 2034.00 level.

Currencies: I am currently on the sidelines.

If you went long May Nat. Gas on last week recommendation in the 1.85 level either take profits (currently at 1.94) or use a tight stop. My current objective is the 1.97-2.03 level.