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ALLENDALE, INC.
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800-262-7538(March 24, 2000) WHEAT: Had a chance to look at the KAWG and NAWG sites Thursday and today. For the most part the nations number one wheat producer is doing way better on crop quality and soil moisture. If the wheat does not make it due to poor stands last fall into this spring the word from the commercial sector is this ground will be destined to be planted into beans. Not enough time in the next 52 weeks let alone the next 9 to rid the USA of old-crop stocks. We prefer to sell rallies up against the down trend resistance. We did take profits on our most recent short position Thursday. Daily chart support is at 2614 with resistance now at 2700 which use to be the key support level. The life of contract low is only seven cents away. As long as moisture continues to invade the southern plains we will write orders to sell July at 2700. With the trend working lower it may not be as difficult to plow under borderline wheat fields which in the longer haul may have a positive impact on the December futures. Lets continue to watch the July/December spread to find the signal to move the cash wheat and the replace the cash with calls. We were able to roll hedges for the 1998 and 1999 wheat crop out to the March 2001 and have placed recco's to roll to the July at our price as outlined on our hedge advice page.
Joe Victor
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