wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste. 2607, Chicago, Illinois
(November 6, 1997) WHEAT: Wheat futures remained fixed in its sideways pattern during the past week as a lack of news kept the market on edge wondering which way to trend. Weekly export sales were again lower which was a bit of a surprise as the figures were marketing year lows. Australia also indicates that their estimate for the upcoming wheat crop has again been raised now above the USDA figure which should further worries that world supplies will be plentiful for awhile. Overall, market internals remain mixed, but are turning weaker. Demand seems to be stagnant as recent large purchases have been offshore which put to rest rumors of a big Chinese purchase. Technically, March wheat remains in a downtrend; the trend would turn back up on a close over $3.78.
FUTURES STRATEGY–Short WZ at $3.90. Maintain a protective buy stop close only at $4.17 or liquidate at $3.45.
OPTIONS STRATEGY–Short WZ $3.80 calls at $.10¢. Maintain at protective buy stop at $.22¢.
Tony Montini
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com