The two main factors affecting markets today is China’s reduction in bank reserve requirements meant to stimulate their economy and disappointing rainfall in parts of the Plains wheat country. Soybean and soybean meal futures are the biggest ag commodities to benefit from China’s move. But it has also lifted energy futures and the U.S. equity markets (remember these indexes dropped sharply Friday).

Cattle futures are down sharply in follow-through selling to Friday’s limit-down losses in nearby Live Cattle. Futures dropped due to a sharp drop in box beef values and lower cash cattle prices -- $160/cwt reported. April LC indicate further weakness is expected in cash prices. Today, Choice Beef is up .92 at 258.71 and Select is up 1.59 at 252.56/cwt.

Lean Hog futures are trading slightly lower and in the middle of today’s trading range. The strong pork market on Friday lent early support to this market but the pork cutout is steady to weaker at midday. Sharp losses in cattle futures is likely weighing on LH futures.

Corn May -1 378; Jly -2 385; Dec -2 401 Bean May +10 979; Jly +10 981; Nov +7 960 Meal +4 319 Oil +26 3178 Wheat Jly +6 495; Dec +5 518 KC unch 515; MGE +3 548 Oats unch 262 Rice -5 985

LC Apr -187 15592; Jun -270 14630; Oct -160 14665 FC Apr -87 21212; Aug -302 21717; Oct -317 20547 LH May -27 7025; Jun -50 7577; Oct -37 7045 Milk Apr +6 1586; May +33 1632

US$ +.5%

Dow +1.3% SP +1% NAS +1.2% Tran +1.6% VIX -6.5% 12.99

WTI +1.6% Brent +.5% Gas +.4% NG -3.2% HO +.1% Eth +.2% Gold -1% Slvr -2.2%

5-yr +.021 1.313% 10yr +.029 1.879% 30yr +.046 2.551%