A.G. EDWARDS & SONS, INC.
One North Jefferson, St. Louis, Missouri
314-955-3050

(March 23, 2000) WHEAT: We expect the wheat market to remain the weak link in the grain complex. From a technical perspective, wheat remains mired in a sideways trading pattern as opposed to upward trending prices in corn and soybeans. Dry weather concerns have generally been alleviated in the heart of the winter wheat belt. Timely rains beginning in February have bolstered hard red winter wheat prospects in Kansas and Oklahoma with some observers even looking for the possibility of average-to-above average yields. Condition ratings in top producing Kansas, while still below last year, have been edging higher over the past several weeks. State officials in Texas report continued abandonment and poor crop ratings (66% of the crop is rated poor-to-very poor).

Bearish world fundamentals are also working against the U.S. wheat market. Export demand continues to be regarded as a source of weakness because of sizable crops overseas and the stronger dollar. In particular, a weaker Australian Dollar has given Australian wheat an added advantage in world markets. We expect that wheat will tag along with corn and soybeans in the short term.

Andrew Buderus

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