Ag Commodity Market Activity Improves

CHICAGO - Feb 2/06 - SNS -- Activity on international agricultural commodity markets is starting to improve as traders return to work from the Lunar New Year celebrations in Asia. China, however, will remain closed for the week, suggesting business will not return to normal until next week.

However, markets have had plenty to think about the past 24 hours, including improved weather forecast for Argentina and India's announcement it will import 500,000 metric tons (MT) of wheat this year -- the first time since 1999.

Grain markets are also excited about President George Bush emphasis on alternate energy in his state of the union address. He intends to implement major aspects of former Democratic Presidential candidate John Kerry's plan to reduce U.S. reliance on imported oil, especially from the Middle East. The policy change should see major government support for ethanol and, the oilseed industry hopes, for biodiesel.

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