wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste. 2607, Chicago, Illinois
(November 13, 1997) CORN: The trade during the past week in the corn sector was mostly weak as pressure stemmed from the monthly USDA release that showed an increase in carryover stocks and a reduction in U.S. exports, which was not expected by most. The fact that China also continues to export corn has also hampered any recent rally attempts. The news on the street still seems to indicate that China has plenty of corn to offer on the export market, as a recent story indicated they could move up to 500,000 metric tons if need be. Overall, market internals have turned sour as the USDA news and poor export line-up have left many market participants wanting to re-assess their upside opinions. The fact that the farmers are just about to finish reaping the third largest corn crop recorded in the U.S. with the USDA cutting export expectations it should produce at least a cap on price activity, if not selling pressure. Technically, December corn is in a downtrend; the trend will turn back up on a close over $2.80½.
FUTURES STRATEGY–Short CZ at $2.85; maintain a protective buy stop close only at $2.97½.
OPTIONS STRATEGY–Short CZ $3.00 calls at $0.07; maintain a protective buy stop at $0.19.
Tony Montini
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com