wmeubank@ocp.kcmo.com
COMMODITY REVIEW AND OUTLOOK
195 Route 6A, Suite 6,
Orleans, Massachusetts
(June 11, 1997) CORN: Because the corn crop had a cool wet start, it may have delayed the crop enough so that pollination will take place when it is very hot. The weather could become an issue to the new crop, as yields could decline. December corn should be viewed as a buy, as December corn is currently offering very little weather premium, and there may be opportunities in the event of a weather market. There is talk that South Africa's crop may be in trouble due to too much rain. July corn should be viewed as a buy on dips, especially if the livestock expansion that some traders are looking for has occurred.
RECOMMENDATION--Buy December and/or July corn at current levels. Use stops of 5-7 cents. Option traders should continue to view December corn as a long-term buying opportunity, and aggressive traders might begin to buy calls at current levels based on the potential for weather problems down the road. Objective is open, but a weather market could easily send the market to new highs. December support lies near 253, and 251. Resistance lies near 260, 263, 267 and 272 or so. Support basis July lies near 270 and 265 or so. Resistance is 280, 285, 290-292, 295, and 298.
M. Steven Morgan
Added to the WWW 06-14-97
Last updated on 06-14-97
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