Market Activity Picks Up

CHICAGO - Feb 6/07 - SNS -- Trading activity on international agriculture commodity markets picked up the pace, judging from the level of overnight activity.

The cold front sweeping down through Canada and deep into the United States is resulted in worries sub-zero temperatures in the Midwest may have done some light damage to crops. But the prospects for better rains in the southern plains keep weather as a negative factor for short-term wheat markets, argue analyst sat the Chicago Board of Trade

Rains were better than expects in Argentina over the weekend, which should ease stress conditions on crops. Argentina expects to produce 19 million metric tons (MT) of corn this year, up from 15.8 million MT last year.

Meanwhile, in the United States the Conservation Reserve program is not expected to enroll much land in the next year and 3 million acres will be coming out of the program on September 30th followed by another 1.1 million acres in 2008.

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