Government Numbers Trigger Market Anxiety

The market is eagerly awaiting the release of government numbers on inflation and grain production. In the Financials sector, investors are focused on the July Consumer Price Index (CPI) report, which could have a significant impact on the Federal Reserve's decisions. However, as one analyst notes, 'Religion is the opiate of the masses,' suggesting that markets may be overemphasizing the importance of government data.

Meanwhile, in the Grains sector, the USDA's WASDE numbers are set to be released at noon ET, and traders are expecting a significant impact on prices. Analysts expect the total production of corn to be pegged at 15.934 billion bushels, down from the previous estimate of 16.0 billion. The national average yield is also expected to be trimmed to 182.4 bpa.

Wheat prices have already surged overnight, with December SRW up 20.5 cents and December HRW up 26.0 cents. Analysts attribute this to the anticipation of a tighter global balance sheet, but some point out that reality may not be as important as fantasy in driving market decisions.