Bonds To Head Higher?

Marc Dupee will be out of the
office until April 9. In his absence this column is being written by
TradersWire’s Duke Heberlein.

Double-digit losses across the stock index futures
ignited a flight to quality into the treasuries today as stocks await the
release of the March employment report on Friday. T-bonds
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gained 5 ticks to go into the close at 104^01 and 10-year notes
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 gained the same to close at 106^02. The race out of stocks
pressured the indices. Nasdaq 100 futures
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were hammered
throughout the day as the contract flirted with a break below 1400, closing at
1405, down 112 points. The S&P futures
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were distributed
in similar fashion as players fled for the exits, losing 42.80 to 1107.50, and Dow
futures

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were pummeled for a 305-point loss, closing the door on
miserable day for the index futures at 9510.

Crude
oil

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ended higher as shorts appeared to cover positions in front
of today’s American Petroleum Institute report, set for release around 4:30 PM
ET. CLK1 gained .57 to 26.16 per barrel, while unleaded gasoline
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was at .9300, up .0320. Heating oil
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 finished
up .0207 at .6950, and natural gas
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made it a sweep for
the energy group, up .012 at 5.115.

Dollar index futures
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appeared
to succumb to profit-taking after hitting a major high in Friday’s session. The
contract lost 1.65, slipping to 115.85, while the Canadian dollar
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 continued its slide, down .0010
to .6333. The
Japanese yen
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struck a new contract low
earlier in the session, but recovered at the close to finish positive, up .0050
to .8038. The British pound
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contract added .0162 to 1.4316
and the euro FX futures
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ended up .0161 at .8967. Swiss
francs

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closed at .5889, up .0104.

Pork futures suffered in today’s session after rising
early on. News of a new suspected case of hoof-and-mouth out of Denmark pushed
the contracts higher in the morning, where traders appeared to use the rally to
sell into and take long money off the table. Lean hogs
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lost
.075 to 65.575 and pork bellies
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gave back .650 to finish at
96.70. Solid cash expectation took cattle futures higher, with live cattle
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gaining .550 to 79.325 and feeder cattle
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adding
on .450 to finish the session at 87.975.

In the softs, cocoa
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continued to fall
out of its failure from an inverted head and shoulders, losing 15 to fall to
1015. May cotton
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 bounced
after hitting a new 15-year low 90 minutes into trading, closing up .57 at
45.30.
Coffee
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probed downward to new contract
lows, slipping .80 to 58.70. Sugar
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rose for a second
consecutive day following Friday’s knife to the downside, closing the session at
8.20, up .05. Orange juice
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also managed to post a slight gain
in trading, ending the day .05 in the green at 74.55.

Metals continued to be mixed as a group, with gold
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being the biggest gainer, up 1.2 to 256.8 and copper
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 posting
a gain of .60 to end the day at 76.10.
Silver
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triggered a Turtle Soup Plus One buy signal early on in the session, but
faltered in the end, closing down .2 at 431.3.

Finally, in the grains, wheat
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managed to
post gains in the face of foot-and-mouth fears, U.S.-China fears and low export
projections, ending up 2 3/4 at 261 3/4. Corn
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also eked out 1
point, ending trading at 209 1/4. The soybean complex was not as fortunate, with
soybeans
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 falling 2 1/2 to 430 1/4, soybean oil
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losing .1700 to end at 15.69 and soymeal
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dropping
.9 to 149.7.

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