Alaron Currency Comment

CHICAGO - Aug 16/06 - SNS -- Following is the grain and oilseed futures comment from Alaron Trading Corp.

U.S. DOLLAR INDEX (DXU6):

The DX opened lower at 85.46 ahead of the much anticipated PPI report. The weaker than expected +0.1 increase and drop in the core of -0.3 sent prices tumbling to a morning Lo of 84.92. Traders rotated into most other majors as the prospect of another rate increase this year dramatically decreased. As we head into the afternoon session, the

DX bounced to our secondary Support level of 85.05.

CANADIAN DOLLAR (CDU6):

The CD opened lower at our secondary Support level of .8850 and slid to a morning Lo of .8845, as lower oil/metal prices continued to weigh on prices. As the DX retraced on the PPI report, the CD rebounded to a morning Hi of .8923, before dipping to .8920 as we head into the afternoon session.

BRITISH POUND (BPU6):

The BP opened lower at our Pivot level of 1.8892 and rose to a morning Hi of 1.8987 as traders bailed out of the DX and into other major currencies. Prices slid to 1.8975 as we begin afternoon trading.

EURO-CURRENCY (ECU6):

The EC opened higher at 1.2749 and slid to a morning Lo of 1.2746, before climbing to a morning Hi of 1.2832 as the DX faltered on a weaker than expected PPI report. As we begin the afternoon session the EC is trading at 1.2812.

. JAPANESE YEN (JYU6):

The JY opened higher at .8609 and slid to a morning LO of .8605, before rising to a morning Hi of .8672 on DX weakness.

Bob Kozak

Alaron Research Team

800.462.4691

bkozak@alaron.com

www.alaron.com

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