The U.S. Labor Department will release its report on consumer prices for August at 7:30 a.m. CDT Tuesday, watched by a big crowd looking for clues to future Fed policy. Traders are still digesting USDA's new estimates on Monday and will keep an eye on weather as well as the response of outside markets to Tuesday's CPI report. The Treasury department reports on the federal budget at 1 p.m.
Weather
A ridge of high pressure is moving from the Rockies into the Plains on Tuesday and temperatures will rise in response. The ridge also comes with dryness as it pushes a system into the Northeast. The heat and dryness will exacerbate drought conditions in the Plains for winter wheat planting, but will help to dry-down corn and soybeans for harvest. Across the West, several small disturbances will make for some showers which will move northeast through the Northern Plains and Canadian Prairies over the next several days.