Week Ends With Good Demand

CHICAGO - Sep 1/06 - SNS -- The week is ending on a busy note, with several sales of U.S. corn reported to South Korea and Taiwan, while India's crop shortfalls remain a significant demand factor on world wheat and pulses markets.

The weather picture for winter wheat planting in the United States is improving with rain forecast for Kansas. More importantly, some light showers are expected in parts of Australia growing areas for the next week. However, warnings of El Nino warm and dry weather in Australia for the next several months has traders nervous.

Traders already expect this year's wheat harvest to range between 17 and 18 million metric tons (MT), down from last year's 25 million MT. But, there is now talk the number will drop further without drought-busting rains.

While the weather picture is helpful for wheat and late maturing corn, too much rain in the Midwest in the eastern or southern areas could slow the early corn harvest.

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