The stock market traded like a roller coaster again, at one point dropping as much as 8% with the anxiety level at a fever pitch. By the end of the day, the December S&P 500 closed down 21.50 at 891.00. In the past two weeks, the December S&P 500 is down 27%. Commodities, in general, were lower, still pressured by concerns over the financial panic. The October one month Libor rate was slightly higher, still a sign that lending remains tight among international banks. Officials from G-7 met today and considered ways to stem the panic. One possibility is to guarantee lending between banks. The June eurodollars closed up .10 at 97.63. The U.S. Census Bureau said that exports fell $3.4 billion in August to $164.7 billion while imports fell $5.5 billion to $223.9 billion. The result was $59.1 billion of net imports, roughly as expected. It may be hard to believe today, but former Federal Reserve Chairman Greenspan said that he expects the U.S. housing market to begin recovering in the first half of 2009. January lumber closed down $6.20 at $200.80. Grains and Cotton The USDA said that the U.S. 2008-2009 ending stocks estimate of: Corn was increased from 1.018 to 1.154 billion bushels. Soybeans was increased from 135 to 220 million bushels. Wheat was increased from 574 to 601 million bushels. Sugar was increased from 505,000 to 656,000 tons. Cotton was increased from 4.90 to 6.20 million bales. The USDA said that 2008-2009 world ending stocks estimate for: Corn was reduced from 110 to 108 million tons. Soybeans was increased from 51 to 55 million tons. Wheat was increased from 140 to 144 million tons. Cotton was increased from 52 to 55 million tons. Grain prices were sharply lower today, dominated by the financial panic. December corn closed down its 30-cent daily limit at $4.082. November soybeans closed down their 70-cent daily limit at $9.10. December cotton closed down its 3-cent daily limit at 49.44, also hurt by today's increase in the USDA's ending stocks estimate. Livestock The USDA reduced its projected price of choice steers in 2008 from 95 to 93.97 cents per pound. The 2009 estimate remained at 98 cents. December cattle were down their 3-cent daily limit at 91.30. The USDA reduced its projected price of barrows and gilts in 2008 from 49.50 to 49.11 cents per pound. The 2009 estimate was reduced from 53.5 to 52.5 cents per pound. December hogs were down 1.25 at 59.87. After the close, the USDA estimated this week's beef production at 512.7 million pounds, up 1.4% from a year ago. Pork production was estimated at 471.8 million pounds, up .2% from a year ago. Orange juice The USDA said in its first estimate of the 2008-2009 season that they expect the Florida orange crop to total 166 million boxes, down from last season's 170 million boxes, but more than analysts were expecting. The projected juice yield was 1.59 gallons per box at 42.0 degrees Brix, down from last year's record high 1.67 gallons per box. March orange juice closed down 5.55 cents at a new contract low of 83.60. Cocoa The Ivory Coast's cocoa management committee is a little slow getting started this year, but today, they handed out 50 export licenses so the new cocoa crop could start flowing out of the country. December cocoa closed down $86 at $2,244. Energies The International Energy Agency (IEA) reduced its forecast of 2008 world oil demand from 86.7 to 86.5 million barrels per day, an increase of just .5% from last year. In 2009, the IEA is expecting world demand to increase .8% to 87.2 million barrels per day. December crude oil closed down $8.63 at $77.99, the lowest close in eleven months. Metals December gold closed down $27.50 at $859.00 as investors struggle to decide if gold is really a safe haven or just another commodity that needs to be sold for cash. Currencies Statistics Canada reported that Canada's unemployment rate remained at 6.1% in September with a surprisingly strong net gain of 106,900 jobs, the biggest one-month gain in at least 30 years. Voters will choose their Prime Minister on Tuesday, October 14th. In spite of today's good news, the December Canadian dollar fell 3.25 cents to 84.43, the lowest spot close in well over a year.

Source