** Isaac has barely moved inland, but KY’s 5-day rainfall forecast soared this afternoon **    http://www.hpc.ncep.noaa.gov/qpf/day1-5.shtml

   Traders found several reasons to rally CBOT futures today and prices closed very near the day’s highs. Funds were big buyers across the CBOT.  Wheat futures rallied on increased worry that Russia will eventually block exports due to a short crop. The wheat supply-demand balance is probably tightening as more wheat is used for feed in place of corn and world production estimates come down.   Even though traders should have known Monday that Isaac would potentially damage unharvested crops in the Mississippi River Valley and the eastern Corn Belt, they didn’t take action (buy futures) until today; must have been the TV coverage of heavy rain & wind in New Orleans.  Technically, December Corn couldn’t have gone much lower without breaking chart support and not enough “bears” were available to sell it.  Soybeans have continued to see strong export demand despite the high prices.  Soybean futures are testing resistance at the record highs posted Sunday night. New highs tomorrow could cause short-covering and see November run to $18.00. The continuation chart has resistance at $17.77 ¾ from July.  Evidence is lacking that the soybean price is high enough to ration the supply.

  Live Cattle futures closed higher on short-covering from optimism that cash cattle prices will improve this week.  However, boxed beef values dropped -- Choice DN 0.99 at 190.92; Select DN 0.99 at 180.95.  

  In sympathy with Live Cattle, the Lean Hog futures market managed small gains despite the ongoing weak hog and pork markets. The Pork Cutout dropped 0.67 to $82.59/cwt. 

 See University of KY article on Isaac’s impact on KY: http://news.ca.uky.edu/article/isaac-could-impact-kentucky

 Corn Sep +21 810; Dec +18 813.5 (793-814.5);     May +15 805.5; Dec’13 +4 653

Bean Sep +31 1763; Nov +31 1753 (1716-1754);     May +19 1567.5;  Nov’13 +10 1347.5

  Meal +9 543 (533-544)   Oil +91 5664

Wheat Sep +31 885.5; Dec +30 906; Jly +12 859.5       KC +29 896;  MGE +30.5 940.5

LC Aug +57 11940; Oct +175 12550; Feb +100 13225 FC Aug +10 14040; Oct +32 14480; Jan +32 14905

LH Oct +45 7370; Dec +27 7102; Feb +32 7907

Milk Sep +26 1932; Oct +29 2028

Oats +13 387

Rice -16 1522 

US$ +.2%

Dow +4 13107

SP +1 1410

NAS +4 3081

Tran -11 5051

 VIX +.57 17.06

WTI -121 9512

Brent +1 11259

Gas -2 311

NG +1 262.4

HO unch 312

Eth +2.6 260.6

Gold -1 1665

Slvr -20 3068

2-yr +.004 0.273%

5-yr +.002 0.680%

10yr +.015 1.652%

30yr +.016 2.765%