Quick Overview

• The Institute of Supply Management's index of U.S. services dropped from 59.0 to 54.3 in February
  
  

• Global causes may on balance have boosted U.S. inflation, but globalization has not affected the ability of the Federal Reserve to influence U.S. financial conditions, Fed Chairman Ben Bernanke said.
  
  

• Japan's unemployment rate improved from 4.1% to 4.0% in January.
  Japan’s household spending rose 0.6% in January.
  Japan's corporate spending increased 16.8% QoQ.
  

• China will boost its 2007 defense budget by 17.8 % the most in five years.
  
  
  

• At its Outlook Forum, the USDA said they expect 2007-2008 U.S. ending stocks of:
  Corn to fall from 752 to 637 million bushels.
  Soybeans to fall from 595 to 370 million bushels.
  Wheat to increase from 472 to 506 million bushels.
  Sugar to fall from 1.695 to 1.215 million tons.
  Cotton to fall from 8.30 to 5.80 million bales
  
  
  

• The International Cocoa Organization expects a world production deficit of 103,000 tons for 2006-2007.
  
  

• The U.S. produced 4.86 billion gallons of ethanol in 2006, up 24% YoY. U.S. ethanol demand totaled 5.4 billion gallons, a 33% YoY. According to the RFA, U.S. ethanol production capacity is 5.6 billion gallons with another 6 billion gallons under construction.