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CONSENSUS

THE WINDY CITY TRADER
P.O. Box 1673, Chicago, Illinois
800-443-2360

(March 12, 2002) SOYBEANS: Beans appear to be stalling here. This mostly speculative move has been aided by strong Chinese buying of meal. The poultry industry in China has grown 4 fold during the past 5 years and this is largely responsible for their steady purchases to date. Buying has slowed considerably during the past week, however, and with the South American harvest about to begin, look for a correction in soy products this week. May beans should fall back to $4.50 and possibly $4.42 if $4.50 is exceeded. $4.70 appears to be the top resistance unless some major weather event occurs. Bean oil supplies are actually very plentiful. The demand for meal has helped beans and meal but when the bean crush occurs, it only adds to the burgeoning bean oil supplies. Especially so, given that palm oil supplies are also well above average. Look for a correction to 1550 for May oil. May meal may test 15200, but should hold up better than the rest of the group.

William Frejlich

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