wmeubank@ocp.kcmo.com
COMMODITY RESOURCE CORPORATION
P.O. Box 8700, Incline Village, Nevada
(November 6, 1997) CATTLE: OUTLOOK: Based on the supply data, and the time of the year, this market should theoretically be much lower. We have seen the feedlot data which indicates the availability of market ready cattle is more than adequate. Yet, cash prices remain stubbornly in the upper sixties, not lower sixties as many had anticipated at this time. What gives? For one thing, the winter storm of three weeks ago has set cattle back, particularly in Kansas and Colorado. For another, demand seems to be pretty good, especially for the time of year. The consumer appears to finally be immune to the E Coli stories, which seem to hit every other week. The supplies are there, so I don't look for this market to surge anytime soon. However, recent market action indicates the bottom may just well be in for the year.
STRATEGY–FEEDERS: At current oversold price levels in the futures, I am not recommending buying price protection at this time.
COW/CALF OPERATORS: We remain short November feeder futures. Cover these hedges under 74, or by the end of this week.
TRADERS: We suggest a sidelines approach at present, however continue to search for a longer-term buying opportunity.
George Kleinman
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