wmeubank@ocp.kcmo.com
THE WINDY CITY TRADER
P.O. Box 1673, Chicago, Illinois
(November 11, 1997) COTTON: The recent USDA number crushed the cotton market. December had been holding support at 7100 very nicely until the recent report raised expectations from 18.30 billions bales to 18.85 billion bales. This caught the trade off guard and massive selling ensued as well as large blocks of sell stops being touched off just below 7100. Cocoa still looks good. Equador is expecting a reduction of 25-50% in their crop. Also, the smog in Malaysia caused by recent fires continues to hurt this crop which needs large amounts of sunshine. Also the Ivory Coast of Africa needs rain immediately. A buy of March futures with stops under recent lows could prove profitable. Orange juice continues to correct oversold conditions. Watch out, however. Once a number of new longs has entered, we could see another quick sell-off.
Stephen Connell and William Frejlich
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