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You just can’t keep this market down.  The major averages dipped into the red for less than 10 minutes this morning before rebounding and closing the session 0.65% higher.  The dip buyers are out in force.  Daily Futures summarizes the action across all markets:

U.S. Economy
The Federal Reserve begins its two-day meeting today and is expected to keep the federal funds rate unchanged. The December 2010 eurodollars closed up .06 at 98.18.

The U.S. Treasury sold $43 billion of two-year T-notes for a yield of 1.034% with a healthy 3.23 bid-to-cover ratio. The December U.S. T-bonds were up 4/32nds at 119.05/32nds.

The Richmond Federal Reserve’s regional index of manufacturing was unchanged in September at +14, less than expected.

The Federal Housing Finance Agency said that single family home prices were up .3% in July, but down 4.2% from a year ago.

Grains and Cotton
The upper Midwest is expecting cooler temperatures next week, but not a damaging frost until possibly early-October. December corn closed up 9.75 cents at $3.257 after the USDA’s crop ratings were slightly lower yesterday.

Excessive rain in the southeastern U.S. is likely damaging the cotton and soybean crops, but just how much is not known. December cotton is trading higher. November soybeans ended up 8.5 cents at $9.22.

After the close, the USDA said that there were 517.9 million pounds of frozen pork in storage on August 31st, up 3.0% from a year ago and less than expected. Frozen bellies totaled 49.1 million pounds, up 54% from a year ago and more than expected. October hogs were steady to higher most of the day, but closed down .27 at 49.87.

December cocoa closed up $94 at a new contract high of $3,170 with concerns about the upcoming crop in West Africa and a falling U.S. dollar.

March sugar closed up .39 at 23.61 while supplies are still tight and the dollar is getting cheaper.

Orange juice
After the close, the USDA said that there were 1.28 billion pounds of frozen orange juice in storage as of August 31st, down 3% from a year ago. November orange juice was down .45 at 99.10.

Saudi Arabia’s Oil Minister told Reuters that the world economy is improving and OPEC will not cut production next year. November crude oil closed up $1.83 at $71.76.

The Asian Development Bank increased its growth estimate for Asia’s developing countries and also said that China’s economy will grow 8.2% in 2009 and 8.9% in 2010, up from earlier estimates. December copper closed up 5.90 cents at $2.8645.

Statistics Canada said that retail sales were down .6% in July at C$34.2 billion, less than expected. From a year ago, sales were down 4.9%. The December Canadian dollar jumped up .81 to 93.58.

Source: Daily Futures

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