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TRIESTER ON THE MARKETS-OSPREY TRADING
111 Presidential Blvd., Ste 230,
Bala Cynwyd PA
(June 13, 1997) SOYBEANS: The soybeans market has rebounded as bulls rushed in on Wednesday. The buyers came as the beans pulled back to 870 on July. The May beans hit 852.0 this week before dipping by 2 cents to close up nicely for the week. It closed up at 850.5. Cargill bought 2-million bushels and Iowa Grain were buyers.
Commercials showed their bear hands fully on Thursday. The market is acting better here. The action we have seen over the last month has exhibited medium volatility. New sellers have come in as expected from last week. The cold weather has become less important. The sentiment figures were slightly negative for beans.
The come back continues and we should look for higher prices. The long-term trend is still upward, and we look for a rally pattern here in June. Lows to be out as we begin June's third week. Wait to sell calls on the September '97 900 contract. We are projecting for next week that prices for beans and corn will rise slightly. The Consensus Index of Bullish Market Opinion shows 52 percent bulls in soybeans. Signs are good as the rebound continues. Our last entry level was optimum. The model shows a trend up from last spring. The weather has become warm and the farm belt is not hurting from rain or freeze anymore. Next week we look for more trend action and local dominated daily action. We are out since the 860 level was broken. The other grains are stagnant. We were 2 cents lower with a 258.5 closing bid in September corn. Look for more counter seasonal movement as June continues and the market frustrates the weak money. The next turn point in time in beans will be June the 7th. Be cautious as the rally pauses here for now. Stay with the shorts on the 900.0 call for July. The highs are in for now basis July futures. The last long positions made a nice 90 cents. Look for a trading range as June continues and summer approaches.
July Soybeans--Position: Close 850.5 up 19.5 cents.
David E. Triester
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