Treasuries are up – Equities sell-off on a cautionary note of higher-than-expected global inflation

Marc Nemenoff PRICE Futures Group

Financials: Sept. Bonds are currently 30 higher at 137’28, 10 year Notes20 higher at 118’03.5 and 5 Year Notes 14.5 higher at 111’31.5. Yields have dropped somewhat and are as follows: 2 year 2.98%, 5 Year 3.08%, 10 Year 3.05% and 30 Year 3.19%. Treasuries are up in a flight to safety (risk off) as equities sell off on a cautionary note of higher than expected global inflation as referred to in G-7 talks. Support on Bonds remains in the 131-132’00 area and resistance is at current prices.

Grains: Dec. Corn is currently8’2 lower at 645’4 and Nov. Beans 8’6 lower at 1469’4. Ending stocks and acreage Reports due out today at 11:00 central time. Analysts are expecting a small increase in Corn acreage and a corresponding decline in Bean acreage. I feel the numbers will be flat. I am still watching long new crop/short old crop spreads and must admit I am surprised at how much July Corn has gained on Dec. Support for Dec. Corn is currently 632’0 and resistance 688’0.

Cattle: Yesterday Aug. LC closed at 132.175 and Aug. FC at 170.725. Both LC and FC are now in short term downtrends ignoring the recent slump in grain prices on deferred contracts. Support is back to 130.40 and resistance is 136.80. I am once again watching long FC/ short LC spreads.

With the idea that cheaper grain prices should have a positive effect on FC.

Silver: Sept. Silver is 23 cents lower at 20.50. Trend remains down.

S&P: Sept. S&P are 45.00 lower at3776.00. Fears of a recession continue to plague this market. Trend remains down. I lok for a test of recent lows in the 3680.00 area.

Author

Marc Nemenoff

PRICE Futures Group

Mr. Nemenoff is a 37-year veteran of the futures industry.

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