Financials: March Bonds are currently 1’03 lower at 154’09, about unchanged over the last week. The 10 Year Note is 14 lower at 127’22, 7 higher for the week and the 5 year notes 9 lower at 119’00.25, up 4 for the week. Yields in the cash market are as follows: 2 years at 1.14%, 5 years at 1.60%, the 10 years 1.785 and the 30 years 2.11%. As we get closer to the March FOC the market is pricing in 4-5 rate hikes this year and has priced in a 20% chance of a 50 basis point hike (0.5%0 in March according some business news outlets. I don’t feel that is likely at this time as it would be destructive to current markets. Support remains at 153’00 and resistance 156’15 for March Bonds.
Grains: March Corn is down 7’2 this morning at 615’2 and down 8’0 for the week. March Beans are down 12’0 at 1533’2, up 98’0 for the week. Continued dry weather in S. America has caused lowered production estimates for the Soybean crop. Support remains at 608’0 for March Corn and support for March Beans is now 1478’0.
Cattle: Feb. LC closed Wed. at 141.125 up 325 for the week amid good retail and wholesale demand turning short-term trends up. Feeder Cattle were also higher for week. AS Corn appears to be rolling over it is time to start paying attention to FC/LC spreads.
Silver: March Silver is29 cents lower at 22.41, down 47 cents for the week. Short term trend has once again turned down. Support is now 22.13 and resistance is 23.40.
S&P: March S&P’s are 61.00 lower at 4516.00. Earnings season is upon us and Facebook missed its numbers derailing the Nasdaq by 2% and the S&P by 1.4%. Support remains at 4220.00 and resistance is now 4580.00.
