Ag Markets Start Week Slow

CHICAGO - Oct 2/06 - SNS -- International agriculture commodity markets got off to a relatively slow start this week, with little fresh business reported during the weekend.

Fridays' Commitment of Traders report with options showed the corn market in a classic bullish setup with non-commercial traders net long 178,557 contracts (and recently buying more) and non-reportable traders holding a net short position of 120,848 contracts.

"This leaves the market vulnerable to increased buying from funds and increased short covering from small specs on strength," argues analysts at the Chicago Board of Trade (CBOT).

In the case of wheat, the Commitment of Traders report showed the market in a slightly oversold condition with speculators net short near 31,000 contracts. Funds were aggressive buyers on the week (net 8800 contracts), which nearly eliminated their net short position. "This leaves the market vulnerable to increased buying from funds and increased short covering from small specs on strength," said CBOT analysts.

For soybeans, the Commitment of Traders report showed the market in an oversold condition with speculators net short 83,473 soybean contracts. Oil is also oversold after funds shifted from a net long to a net short position, and meal is still in a bearish setup.

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