Markets Open on Busy Note

CHICAGO - Nov 5/07 - SNS -- International agriculture commodity markets opened weekly trading on cash markets on a relatively busy note, with the Turkish and Philippine governments indicating their countries will soon tender to import corn.

Friday's Commitments-of-Traders (COT) report with options showed corn futures markets in a classic bullish set-up with non-commercial traders (funds) net long 173,217 contracts and non-reportable traders net short 113,452 contracts, note analysts at the Chicago Board of Trade (CBOT).

For soybeans, the COT report suggests markets are in a positive set-up but vulnerable to long liquidation selling as funds have extended their net long position to a new record, CBOT analysts caution. Non-commercial traders hold a near record net long of 133,178 contracts. In meal, funds are net long a record high 68,005 contracts which pushed the spec net long to 90,578 contracts, also a new record.

In the case of wheat, the COT report shows markets in a positive set-up, CBOT analysts said, but the selling trend of the non-commercial trader (funds) is a short-term negative force. The supplemental report which excludes index funds showed that trend-following funds were actually net short 11,634 contracts not the net long position of 14,660 posted in the traditional report. Non-reportable traders hold a hefty net short position of 34,965 contracts.

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