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The National Association of Realtors said that U.S. existing home sales were at an annual rate of 5.00 million units in July, up 3.1% MoM.

The USDA said:
64% of the corn crop was rated good to excellent, down from 67% last week.
61% of the soybean crop was rated good to excellent, down from 61% last week.
48% of the cotton crop was rated good to excellent -- same as a week ago.
55% of the spring wheat crop was rated good to excellent.

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• (FT)The decline in oil prices and the rally in the dollar was "encouraging", Ben Bernanke said, suggesting the Federal Reserve thinks global inflationary pressures could be starting to ease.
  

• Industrial new orders for the Euro area fell 0.3% in June.
  

• Canada anticipates wheat production will rise 27% this year to 25.4 million tons. They also estimated that soybean production will be up 17%, but corn production will fall 15%.
  

• The USDA said there were 9.869 million head of cattle on feed as of August 1st, down 4.2% YoY. July placements were up 2.4% YoY and marketing’s were up 1.1%.
  

• The USDA said there were 492.2 million pounds of frozen pork in storage on July 31st, up 8% YoY. Frozen pork bellies totaled 59.2 million pounds, up 87% YoY.
  

• The USDA said there were 1.42 billion pounds of frozen orange juice in storage, up 68% YoY.
  

• Indonesia, the world's biggest exporter of tin, has confirmed plans to limit production of the commodity in a bid to support prices and sustain the local industry

U.S. Mint Suspends Sales of American Eagle Gold Coins
It is the first time in two decades that the Mint halted sales of the coins, which are made of 22-carat gold from domestic mines. The coins also contain small amounts of alloy for hardening.

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• U.S. jobless claims were down 13,000 last week to 432,000.
  
• U.S. leading indicators fell 0.7% in July.
  
  
• The Philadelphia Feds regional index of manufacturing rose from -16.3 to -12.7 in August
  
  

• U.K.'s retail sales volume rose 0.8% in July
  

• YoY Canada’s consumer prices rose 3.4% in July.
  
  

• The International Cocoa Organization said 2007-2008 world cocoa production will be short of consumption by 88,000 tons, more than the 41,000 tons projected earlier.
  

• (WSJ) Fannie Mae and Freddie Mac need to refinance $225 billion of debt by the end of September. Investor interest may hinge on the details of any potential government bailout.

The Golden Value of Reliable Numbskulls
Gold is the "the epitome of human stupidity," said an opinion in the Telegraph newspaper. "A metal that is dug out of the ground at great cost to be reinterred in bank vaults as a protection against the same stupidity as caused it to be dug up in the first place."

Japan's Exports Rebound, China Becomes No. 1 Customer (Update2)
(Bloomberg) -- Japan's exports rebounded in July as China replaced the U.S. as the nation's largest customer.

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• Canada’s sales rose 0.5% from May, and up 4.0% YoY
  

• Shanghai equities made their biggest daily gain in four months as optimism rose the Chinese authorities would implement a stimulus plan.
  

• The U.S. DOE said:
  Supplies of crude oil rose 9.4 million barrels to 305.9 million barrels -- more than expected. Supplies of gasoline fell 6.2 million barrels
  Supplies of heating oil supplies rose 600,000 barrels.
  Refinery use dropped from 85.9% to 85.7% of capacity.
  Gasoline demand fell 1.6% YoY
  Distillate demand rose 3.3% YoY.
  

• The World Meteorological Organization said the world was cooler than at least the 5 previous years during the first half of 2008.
  

• Pirates hijacked a Malaysian oil tanker carrying palm oil in the waters off Somalia. It joins ships from Japan and Thailand that have been seized recently.

• Goldman Sachs reasserted a forecast that oil prices could hit a record $149 a barrel by the end of the year as supply struggles to meet rising demand in Asia.

Proportion and Distortion
Russia and Georgia

Rice: Military power is "not the way to deal in the 21st century"
The idea that the U.S. can, should and must be, more or less, in a state of permanent war, and can start wars in a whole host of circumstances having nothing to do with defending the country from an attack or imminent attack, is as close to an unchallengeable, bipartisan article of faith as it gets. We're a country that fights wars and uses military force in far more places and for far broader reasons than any other country in the world, by far. Again, regardless of one's views about whether our wars are really Good and Just -- even if one believes that what we drop on other countries are Good and Loving Freedom Bombs -- it's still just a fact that no country views military action as a more appropriate response in more situations than the U.S. does.

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• U.S. Labor producer price index rose 1.2% in July, and up 9.8% YoY
  
• U.S. housing starts were at an annual rate of 965,000 units in July, down 11% from June's pace, and down 30% YoY.
  

• Canada’s wholesale sales rose2.0%
  

• Japan kept the interest rate unchanged at 0.50%.
  

George, Stay Out of Georgia
by William S. Lind

It almost passes belief to think that the Bush administration, bogged down in two wars and planning a third (with Iran), might move toward a confrontation with Russia. Yet that is what the White House appears to be doing.

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• The USDA said:
  67% of the corn crop was rated good to excellent, the same as last week.
  62% of the soybean crop was rated good to excellent, down from 63% last week.
  56% of the spring wheat crop was rated good to excellent.
  48% of the cotton crop was rated good to excellent, up from 45% last week.
  

• Canada confirmed mad cow disease in a six-year-old beef cow from Alberta.

Dollar surge will not stop America feeling the effects of a global crunch US exports have risen 22pc over the past year, outstripping Chinese growth. The US non-oil trade deficit has shrunk by two fifths since 2002. It is now running at $300bn a year. This is 2.1pc of GDP.

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• U.S. industrial production rose 0.2% in July, better than expected
  

• The New York Federal Reserve's regional index of manufacturing rose from -4.92 to +2.77, better than expected.
  

• The University of Michigan's index of consumer sentiment rose from 61.2 to 61.7
  

• Canada’s manufacturing sales rose 2.1%.
  

• YoY China's vehicle sales rose 6.8% in July
  

• Hong Kong’s port handled 2.19 million TEU in July, an increase of 4.7%.
  
• Singapore reported an 11.6% increase in container movement in July.

Blowback From Bear-Baiting by Patrick J. Buchanan
Is not Western hypocrisy astonishing?

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• U.S. consumer prices rose 0.8% in July and 5.6% YoY.
  

• The National Association of Realtors said YoY the prices of single family homes fell 7.6% in the second quarter.
  

• GDP in the Euro area fell 0.2% in the second quarter.
  YoY Consumer prices in the Euro area rose 4.0% in July.

• YoY China's industrial production rose 14.7% in July

Quick Overview

• U.S. retail sales fell 0.1% in July, but rose 2.6% YoY.
  

• U.S. business sales rose 1.7% in June
  

• U.S. inventories rose 0.7%.
  

• Japan's GDP fell 0.6% in the second quarter.
  

• U.K.'s unemployment rate rose to 5.4%, up from 5.2% last month.
  

• YoY China’s retail sales rose 23.3% in July.
  

• The U.S. Department of Energy said:
  Supplies of crude oil fell 400,00 barrels to 296.5 million barrels.
  Supplies of gasoline fell 6.4 million barrels
  Supplies of heating oil rose 1.0 million barrels.
  Refinery use fell from 87.0% to 85.9% of capacity last week.
  Gasoline demand fell 1.9% YoY
  Distillate demand rose 4.3%.

Quick Overview

• U.S. Exports rose $6.4 billion to $164.4 billion in June - imports rose $4.0 billion to $221.2 billion. The result was $56.8 billion of net imports - narrowing the trade deficit unexpectedly.
  

• The Philadelphia Federal Reserve expects GDP to be up an annual rate of 1.2% in the third quarter, less than previously thought.
  

• Canada’s exports rose 3.1% in June - imports rose 2.0%.
  

• U.K.'s consumer prices rose 4.4% YoY .
  

• Japan's wholesale prices rose 7.1% YoY.
  

• The USDA's 2008-2009 U.S. ending stocks guess for:
  Corn was raised from 833 to 1,133 million bushels, more than expected. (Take notice when a bearish report fails to produce its expected results)
  Soybeans were reduced from 140 to 135 million bushels.
  Wheat was increased from 537 to 574 million bushels.
  Sugar was increased from 607,000 to 767,000 short tons.
  Cotton was reduced from 5.30 to 4.60 million bales.
  
  

• The USDA's 2008-2009 world ending stocks guess for:
  Corn was raised from 105 to 112 million tons.
  Soybeans were increased slightly from 48.9 to 49.3 million tons.
  Wheat was increased from 133 to 136 million tons.
  Cotton was reduced from 53 to 51 million bales.
  

• The USDA increased its beef production guess for 2008 from 26.6 to 26.7 billion pounds.
  

• The USDA increased the pork production guess for 2008 from 23.5 to 23.6 billion pounds.
  

The Russo-Georgian War and the Balance of Power By George Friedman

..Moscow did not have to concern itself with the potential response of the United States or Europe; hence, the invasion did not shift the balance of power. The balance of power had already shifted, and it was up to the Russians when to make this public. They did that Aug. 8.

Georgia: Vladimir Putin sends emphatic message of global importance
Mr Putin has demonstrated that the Kremlin will use force to protect the 25 million Russians who inhabit the Soviet Union's successor states, well beyond the mother country's borders.