Good afternoon and welcome to Markets Desk. Here's what's moving markets right now.
All eyes are on tomorrow morning's August consumer price index report from the Bureau of Labor Statistics, dropping at eight thirty eastern. The number carries unusual weight this cycle, with the Fed watching closely for any sign that inflation's cooling trend is durable enough to justify its next policy move. Expect the bond market to be on edge overnight.
Feeding into that inflation picture is a story developing well beyond the Strait of Hormuz. Conflict in Russia is driving fresh supply disruptions to diesel markets, and analysts are describing the impact as massive. Combined with ongoing Middle East tensions, energy traders are pricing in a supply premium that hasn't fully worked its way into headline CPI yet, which makes tomorrow's print even harder to call.
Meanwhile, the grain pits are showing life. Chicago soft red winter wheat is up seven to eight cents at midday, with Kansas City hard red winter adding five to seven. Cattle futures are also holding firm, with live cattle trading as much as thirty seven cents higher. Cash trade hasn't launched yet this week, but the tone on the floor remains constructive heading into the weekend.
That's the tape. Markets Desk, signing off the floor.
