Markets To Watch Today

Ethanol: With the current boom in Ethanol Futures contracts, so is the boom in building dozens of multimillion-dollar ethanol stills also called "biorefineries". This current "boom" in construction will increase the domestic production of alternative fuels, which has been estimated at 4.8 billion gallons per year. Although Ethanol production has increased, the price of Corn futures hasn't; in fact a Corn contract is worth about the same as it was two years ago. The reason, analysts say, is because Ethanol is causing a divergence in prices, as Ethanol plants draw away from Corn delivery points designated by the Chicago Board of Trade, which is causing greater basis volatility. September Corn contracts closed flat on Friday at $2.45 per bushel. The August Ethanol contract closed up 10 cents, at $2.56 per gallon.

Dollar: A weaker than expected employment report for July pushed the Dollar down Friday. The Dollar could be set to hit some ranges this week, based on the Federal Reserve's expectation of a halt in its rate tightening campaign, which has been going on for the last two years. Investors say there is only a 15% chance the Fed will increase rates. The September Dollar futures contract closed down 42, at 84.38.