Agriculture Commodity Markets Busier

CHICAGO - Mar 7/06 - SNS -- International agricultural commodity markets were busier overnight with sales of corn, wheat and rice confirmed to Pacific Rim buyers.

Grain markets were also buoyed by Mexico's loss of an appeal against the WTO ruling that the Mexican taxes on soft drinks sweetened with anything other than cane sugar violated trade rules.

The US Corn Refiners Association believes that the soda tax caused a loss of 168 million bushels usage of corn per year. Traders are hopeful this news, along with the surge in U.S. domestic sugar values, should help boost corn industrial usage. At the same time, increased U.S. sugar import demand has prompted Australia to ask for a permanent increase in the size of its sugar export quota from 87,000 to 136,000 metric tons (MT).

"While the longer term demand fundamentals are supportive, the market remains vulnerable to a technical sell off, and the bird flu spread is also a concern," noted analysts at the Chicago Board of Trade (CBOT).

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