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GLOBAL ASSET MANAGEMENT
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Chicago, Illinois
(June 12, 1997) CORN: The trade during the past week in the corn sector was mixed overall as the market was quiet ahead of the USDA reports. The firm underlying tone stemmed from strong export movement as weekly sales were about 6% greater than the week before. Despite decent export news the market seemed to be burdened with the prospects of a large crop given the fact that growing condition have been extremely good so far. The USDA releases lacked surprises for this sector as they left production for '97/'98 at 1.349 billion bushels which was unchanged from a month ago and also left carryover unchanged from a month ago standing at 909 million bushels. The most recent planting progress report showed that 98% of the crop is in the ground which is well ahead of the 5-year average of 89% and an early planted crop will probably miss all chances of frost damage in the fall, as long as summer weather does not set the crop back. Technically, July corn is in a downtrend; the trend would turn up on a close over $2.90.
FUTURES STRATEGY--Short CN at $3.10. Move protective buy stop down to $2.92-3/4 on a close only basis. Sell CZ at $2.56. If filled enter a protective buy stop close only at $2.69-1/2.
OPTION STRATEGY: Sell CU $2.80 at $.09. If filled enter a protective buy stop at $.21.
Tony Montini
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