Ag Market Weather and Activity Improves

CHICAGO - Jan 4/07 - SNS -- Activity on international agricultural commodity markets improved overnight, with purchase tenders announced by Egypt, Korea and Taiwan for wheat and soybeans.

The weather news in the United States is looking more positive for both winter and spring wheat. Winter storms over the weekend brought a second batch of much needed moisture to the hard winter wheat belt. It had been suffering under extremely dry conditions this past season. Extra snow cover also provides protection to the crop against severe cold, note analysts at the Chicago Board of Trade (CBOT).

However, the storms are expected to be followed by a dry period. Kansas crops at the end of December were rated 57% in good to excellent condition and topsoil moisture was rated just 21% short to very short. With a significant jump in planted area and snow protection against the cold, the western Kansas region looks to come out of dormancy in better shape than in the late fall when top and sub soil conditions were dry.

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