Firmer Start to Week's Markets

CHICAGO - Mar 24/08 - SNS -- International agriculture commodity markets opened weekly trading on a firmer note from a pricing perspective, but little fresh business reported.

Friday's Commitments of Traders Report showed moderate selling of 6,711 contracts by index funds in soybeans, Chicago Board of Trade (CBOT) analysts. Trend-following funds were small net sellers, commercials were small net buyers and small traders were small net sellers.

"In meal, commercials were significant net buyers of 11,913 contracts. Non-commercials were net sellers of 9,082 contracts in meal, and small traders were net sellers of 2,832 contracts. There were more significant changes in oil with trend following funds shown as net sellers of 11,924 contracts. Commercials were large net buyers of 13,936 contracts. Small traders were net sellers and index funds were very small sellers," CBOT analysts said.

For corn, the Commitments of Traders Report showed massive net selling by trend-following funds with total net sales of 42,749 contracts, "and this may be the most significant market factor this morning," note CBOT analysts.

"However, these funds remain net long by a very large amount at 182,935 contracts. Index funds added less than 1% to their longs. Commercials were huge net buyers of 46,780 contracts, and small traders were net sellers.

For wheat, the Commitments of Traders Report did not show any dramatic changes, note CBOT analysts. "Commercials were small net sellers, and small traders were small net buyers. Trend following funds were very small net sellers, and index funds added a little less than 1% to their long position."

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