Markets Open in Good Demand

CHICAGO - Sep 5/06 - SNS -- North American traders came back from the long, Labor Day weekend with some success to report selling wheat and corn during the holiday period.

Friday's Commitment of Traders report with options showed the wheat market in an oversold condition with speculators net short nearly 47,000 contracts. The buying trend of the fund trader (decreased their net short position by near 3,100 contracts for the week ending August 29th) is a short term positive factor, report analyst at the Chicago Board of Trade (CBOT).

For corn, the Commitment of Traders report "showed the market in a classic bullish setup with non-commercial traders (trend following funds) net long near 115,000 contracts and non-reportable traders net short near 120,000 contracts," CBOT analysts said.

"This leaves the market vulnerable to increased buying from funds and increased short-covering buying from small specs on strength. The buying trend of the fund trader (increased net long position by near 4500 contracts for the week ending August 29th) is a short-term positive factor."

The Commitment of Traders report showed the soybean market in an oversold condition with speculators net short nearly 45,000 contracts. Meal is in a classic bearish setup, but the non-commercial net short position reached a record high of 43,553 contracts. For oil, the market is in an overbought condition with speculators net long 25,814 contracts.

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