The Federal Reserve begins a two-day meeting today and many expect the federal funds rate to be lowered from 1.00% to .50% tomorrow afternoon when the meeting concludes. The September eurodollar closed up .065 at a new contract high of 98.395. The March U.S. dollar index dropped 1.195 cents to 83.085, the lowest close in eight weeks. The Federal Reserve said that industrial production was down .6% in November and down 5.5% from a year ago, a little better than expected. The National Association of Home Builders' sentiment index stayed at its record low of 9 in December. March lumber fell $6.30 to a new contract low of $181.20. Energies OPEC meets in Algeria on Wednesday and is expected to cut its oil production targets. March crude oil started the day higher, but finished down $1.65 at $47.47. The chief economist for the International Energy Association said in an interview with The Guardian that conventional oil production will plateau sometime around 2,020... not that far away (see the Five-Star Article in the third column). The eastern one-fourth of the U.S. is enjoying mild to warm temperatures while the thermometer plummets for the rest of the country. March natural gas was up 13 cents at $5.682. Grains and Cotton The USDA said that last week's export inspections of: Corn totaled 29.3 million bushels, down 42% from a year ago. Soybeans totaled 34.4 million bushels, down 10% from a year ago. Wheat totaled 12.3 million bushels, down 39% from a year ago. March wheat ended up 7 cents at $5.20. On Thursday, the USDA increased the 2009 corn ending stocks estimate from 1.124 to 1.474 billion bushels, but prices jumped higher on Friday with talk that corn acres may be lower next spring. March corn was up 1.75 cents at $3.752. Livestock Late Friday, the the U.S. Meat Export Federation (USMEF) said that U.S. beef plus variety meat exports were up 31% in the first ten months of 2008 from a year ago. They also said that pork plus variety meat exports were up 67% from a year ago. February cattle closed up 1.00 at 83.80. Cocoa March cocoa jumped up $164 to $2,560, the highest close in over two months, with ongoing harvest problems in the Ivory Coast and support from today's weak U.S. dollar. Orange juice We are getting near the time of year when frost can threaten the citrus crop, but so far, the ten-day forecast for central Florida remains safely warm. March orange juice ended down .05 at 76.50. Metals February gold took advantage of today's drop in the dollar and closed up $16.00 at $836.50, the highest close in eight weeks. March silver finished up 39 cents at $10.62, also the highest close in eight weeks. Currencies The Bank of Japan's sentiment survey of large manufacturers (Tankan) showed a drop from -3 to -24 in the latest quarter, the lowest reading in over six years. The March yen closed up .0056 at a new contract high of 1.1060. China's National Bureau of Statistics said that industrial output was up 5.4% in November from a year ago, the smallest monthly gain in over six years. March copper closed down 2.35 cents at $1.4050.

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