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(March 4, 2002) SOYBEANS: SOYBEAN OIL--May soybean oil prices appear to be in the process of establishing a seasonal bottom. Early in the year, prices challenged and held key support levels near 15.25. This past week, prices moved through overhead resistance at 15.80. Now prices could be poised to challenge 16.20. Seasonal studies in the past have shown a trend towards firming prices in the months of March, April and May. Overseas palm oil values have started to firm on ideas that an El Nino weather pattern could be forming. Commodity funds appear to be covering short positions and now I believe traders can participate on the long side.

RECOMMENDATION--Traders can consider purchasing May soybean oil at 15.85 or better. If filled, consider placing sell stops at 15.22. My upside targets are 16.25 and then 16.70. Option traders might consider purchases of the May 16 cent calls.

Boyd Baker

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