IRA EPSTEIN & COMPANY
223 West Jackson, 7th Floor, Chicago, Illinois
312-207-1800(March 14, 2000) CORN: Last week I recommended in my report the purchase of July corn at the market. If traders followed my analysis, they should be long somewhere in the $2.33 to $2.37 price zone. I believe corn is headed to higher price levels, and traders not yet in the market might still consider entering the market.
Corn exports for the past several weeks have been reported above 1 million MT. Demand appears healthy at this time. Now weather should become the primary fundamental factor affecting prices.
This week an article in the Wall Street Journal mentioned the prospects of dry weather through the spring planting season. Seasonally speaking, corn prices have shown a tendency to rally throughout the spring season.
RECOMMENDATION--Traders long July corn should continue to hold. Traders not yet in the market might consider purchases at $2.35 or better. My first upside target is $2.43. Stops should be placed at $2.23. Option traders might consider bullish strategies such as vertical bull call spreads or synthetic long option strategies.
Boyd Baker
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