Iraq and Iran Getting Busy

CHICAGO - May 4/06 - SNS -- International agricultural commodity markets continue to experience relatively light trading interest in commodities of most interest in North American farmers and traders, though Iraq has indicated it will start a new round of wheat purchases negotiations next week after reports a 100,000 metric ton (MT) sales of U.S. wheat was cancelled.

Futures markets experienced some early strength yesterday from the outside market forces from initial strength in gold and energy markets. However, that did not last long and a sharp sell-off in energy markets triggered fund selling in corn and soybeans.

Corn was not helped by concerns over large short term supplies and the idea weather conditions will allow growers in the northern sections of the Corn Belt to make good progress seeding this year's crops.

Wheat was not helped by talk of good rains in northwestern Kansas overnight and reports of good yields in central and northern Kansas from the crop tour helped pressure. In addition, reports from the tour in western and southern Kansas suggests that the crop is not as bad as scouts anticipated which added to the negative tone.

Subscribers can read the full text of the article by Clicking here