This article is brought to you by:
CONSENSUS

IRA EPSTEIN & COMPANY

223 West Jackson, 7th Floor, Chicago, Illinois

312-207-1800

(March 11, 2002) SOYBEANS: SOYBEAN OIL--Last week I mentioned that soybean oil prices appeared to be forming a trading bottom. Traders who followed my recommendation to buy May soybean oil at 15.85 or better should be comfortably ahead. Last week's price low in May soybean oil was 15.80. The market is now approaching overhead resistance near 16.60.

Seasonal studies point towards firming prices in the months of March, April and May. Competing overseas oil seed values look to be improving on concerns of a possible El Nino weather pattern forming. Canola prices in Canada are remaining firm due to dry conditions. With the technical, seasonal and fundamental picture starting to line up in soybean oil, prices could continue to move higher. As I read the charts, a price move above 16.70 could set the table for a possible move towards 17.25. If weather concerns this spring develop over U.S. soybean production, this could further add to what I see is an already bullish scenario.

RECOMMENDATION--Traders who are long May soybean oil should be considering exiting half positions for a nice profit, if you followed my recommendation to buy. Traders who are not long yet can consider entering new positions if a pullback to 16.25 develops. Stops on all positions should be considered at 15.85.

Boyd Baker

Hosted by:
CONSENSUS, INC. AND INVESTORS CO-OP
P.O. Box 520526
Independence, MO 64052-0526
816-373-3700
Fax: 816-373-3701
editor@consensus-inc.com