Financials

This mornings  CPI held no surprises  coming in line within expectations: month over month 0.8% , Core (ex food and energy) year over year 6.4%. Current Yields are: 2 yr. 1,67%, 5 yr. 1.87%, 10 yr. 1.935, 30 yr. 2.31%. The yield curve  continues to flatten. Yesterday’s expectation of an easing in tensions in Russia/Ukraine took out some of the fear premium that has been building over the past few weeks as we saw the 158’24 resistance level in Bonds tested, broken through and retreated. Once again traders are talking a 0.5% rate hike at next FOMC meeting, most analysts, myself included are guesstimating  a 25 basis point hike. Support is the 153’00 level and if this is breached 150’16.

Grain

May Corn is 15 cents higher at 748’4 and May Beans 22’0 higher at 1694’0. Yesterday’s stocks report was somewhat friendly Corn, neutral Beans and slightly negative Wheat. Over the last week we have seen new crop/old crop spreads narrow and I feel there is some more room for these spreads to narrow over time.

Cattle

Apr. LC is down 50 points at 137.10, down 240 for the week. Apr. FC are 225 lower at 157.90 down 382 for the week. Due to the high cost of feed and transportation I still expect FC to lose ground to LC. Support on Apr. Cattle is the 134.00 area.

Silver: May Silver is 50 cents higher at26.31. Short term trend remains up as a flight to safety continues, keeping tis market quite volatile and headline sensitive.

S&P

March S&P are 37.00 lower at 4237.00. Trend remains down. Support remains in the 4150.00 area and resistance has been lowered to 4360.00. Next week I will be quoting June contracts.

Regards,