wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W Madison, Ste 2607,
Chicago, Illinois
(June 12, 1997) WHEAT: Wheat futures spent the past week in a volatile, but weak state as it seems the market continues to find pressure from fairly weak exports and a lack of strong favorable news. The USDA indicated on their most recent Production report released during the past week that they have upped wheat production from last months report by 43 million bushels due to higher winter wheat yields. The later situation also helped boost ending stocks by 22 million bushels despite an increase in exports of 25 million bushels. So overall supply problems seem to be waning especially with weak export markets and predictions for a record world crop during the 1997-1998 growing season. Overall, market internals remain in a dull to weak state and with a large U.S crop almost ready to be reaped the trend of lower prices should continue through years end and maybe longer as long as there are no damaging weather events. Technically, July wheat is in a downtrend; The trend would turn back up on a close over $3.87. FUTURES STRATEGY--Short WN at $4.28-1/2. Move the protective the protective buy stop close only down to $3.79.
OPTIONS STRATEGY--Short WN $5.00 calls at $.08. Cancel stop and liquidate at market.
Tony Montini
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