Strong Start to Weekly Trade

CHICAGO - Mar 3/08 - SNS -- The world's agriculture commodity markets started the week with futures values surging higher in weekend trading and cash markets finding support from some important commercial deals.

Friday's Commitment of Traders report with options showed corn futures experienced considerable liquidation of non-commercial traders (funds), report analysts at the Chicago Board of Trade (CBOT). Trend following funds reduced their net long position by 5,602 contracts to 249,536. On the other hand, non-reportable traders were net buyers of 14,411 contracts for the week, while index funds increased their net long position by 8,676 contracts to 420,583 contracts.

For wheat, CBOT analysts said the report showed a buying trend from fund traders, which is seen as a short term positive force. Trend-following funds shifted from a net short to a net long position, buying a net of 4,280 contracts for the week. Index funds reduced their net long position by 3,512 for the week to 188,899 contracts, and the selling trend is a concern for the bulls.

In the case of soybeans, CBOT analysts said the report showed the market "in an overbought condition and also with a slight long liquidation trend. The long liquidation trend should be monitored closely, and the selling trend is a short term negative force. Trend-following funds reduced their net long position by 5,759 contracts to a net long position of 111,610. Index funds reduced their net long position by 888 contracts to 197,819 contracts.

"For soybean oil, speculators continue to buy, increasing their net long position by 5,767 contracts to 58,035. For meal, speculators increased their net long position by 8,089 contracts to 76,843."

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