This week’s trade involves lots of politics – from today’s Italian government election to the pending March 1 ^st federal budget sequester. Already the projected outcome in Italy has erased an early rally in US equities and strengthened the US dollar index. The US$ is trading above the last major high in November of 81.45. The stronger dollar has also backed energy futures off the morning highs.

CBOT futures have also sold off since the pits opened at 930 am CT. Besides the stronger US dollar, other impacts are better-than-expected rain in Argentina, more rain/snow forecast for the Plains, and disappointing soybean export inspections reported this morning.

Live Cattle futures are higher on the February and April and lower in deferred contracts. The recent bout of winter weather could reduce nearby supplies of market-ready cattle. Traders will keep an eye on the news for indications of the federal government interrupting federal meat inspections in March if the budget sequester goes into effect.

Lean Hog futures are trading lower on weak cash markets.

Corn Mar +1 691; Jly -1 671; Dec -2 551 Bean Mar -19 1442; Jly -18 1411; Nov -8 1258   Meal Mar -4.5 422.5; Oct -2 350   Oil -61 4974 Wheat Mar -9 706; Jly -7 725; Dec -7 740 KC -9 741; MGE -8 795

LC Feb +67 12702; Apr +45 12867; Oct -27 12952 FC Mar -10 14115; Apr +30 14407; Aug +32 15460 LH Apr -50 8115; Jun -55 9040; Oct -67 8132 Milk Mar -4 1720; Apr -3 1724

Oats +3 391 Rice -11 1547

 US$ +.2% 81.59 Dow -.4% SP -.4% NAS -.1% Tran -.5%   VIX +8% 15.30

WTI unch Brent +.4% Gas -.2% NG +3.3% HO unch Eth +.5%

Gold +1% Slvr +2%

5-yr -.03 0.80% 10yr -.03 1.94% 30yr -.03 3.14% 

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