wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste. 2607, Chicago, Illinois
(November 6, 1997) SOYBEANS: Activity in the soybean complex during the past week had a firm tone as the market found support on rumored Chinese purchases in the soymeal market, along with worries of planting delays in Brazil due to heavy rain. Demand or expected demand continues to give this complex a firm underlying tone, but as of yet, China has still not purchased a large quantity of soymeal and, in fact, the export sales figures for the week were 33% below the four-week average, possibly indicating that the export demand will weaken for awhile, especially if the financial crisis in Asia becomes a real big problem. The supply side of the market does not look all that great, either, with tight supplies behind the market now will focus on the new crop of record-crop proportion, which could create havoc on prices, especially of demand wanes. The U.S. harvest has been steady and the yields seem possibly greater than anyone expected. Technically, March soybeans remain in an uptrend; the trend would turn down on a close below $6.90.
FUTURES STRATEGY–Short SH at $7.10. Maintain a protective buy stop close only at $7.39¼.
OPTIONS STRATEGY–Short SF $7.75 call at $.07¢. Maintain a protective buy stop at $.19¢.
Tony Montini
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