Year Opens on Relatively Busy Note

CHICAGO - Jan 5/07 - SNS -- International agriculture commodity markets are finishing the first week of the new year on a relatively busy note, with important wheat sales recorded to Egypt and good background trading interest.

Markets are taking a dim view of the weather situation in the United States. Storm systems have left significant snow pack over key winter wheat producing regions in the United States, affording important protection against the cold and pointing to improved soil moisture conditions in the spring -- despite the increased risk of flooding.

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. As of November 26, the Kansas winter wheat crop was rated 51% in good to excellent condition.

The USDA's weekly export sales estimates were released before the opening and came in at 573,500 metric tons (MT) for current crop corn; while 35,400 MT of new crop sales were cancelled for a net of 538,100. This was well below trade expectations and down from 1.22 million MT last week.

Soybean export sales for the week were lower than expected at 338,900 MT of current crop and 10,900 MT of new crop beans. Meal sales came in at 71,800 MT for the current crop and 800 MT for new crop for a total of 72,600. Oil sales cam in at 4700 MT.

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