Market Lull After Holidays

CHICAGO - Jan 3/07 - SNS -- International agricultural commodity markets were relatively quiet at mid-week, reflecting a normal lull after a long holiday period.

Last week's Commitment-of-Traders report with options showed the wheat market in a classic bullish set-up with non-commercial traders (trend following funds) net long 28,332 contracts and non-reportable traders net short 26,461 contracts, say Chicago Board of Trade (CBOT) analysts. "This leaves the market vulnerable to increased fund buying and increased spec short-covering if resistance levels are violated."

For corn, the Commitment-of-Traders report showed it in a classic bullish setup, with non-commercial traders (trend following funds) net long 297,398 contracts and non-reportable traders net short 94,104 contracts. This leaves the market vulnerable to increased fund buying and increased spec short covering if resistance levels are violated, CBOT analysts say.

In the case of soybeans, the Commitment of Traders report showed the soybean market in a classic bullish setup with non-commercial traders (trend following funds) net long 46,601 contracts and non-reportable traders net short 26,227 contracts. This leaves the market vulnerable to increased fund buying and increased spec short covering if resistance levels are violated.

"Oil and meal are showing overbought readings with specs net long 58,623 contracts and 26,462 contracts respectively. A shift to a more negative tone in corn could lift the legs out from under the soybean complex," CBOT analysts said.

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