wmeubank@ocp.kcmo.com
THE COMMODITY RESOURCE CORPORATION
P.O. Box 8700, Incline Village, Nevada
(November 12, 1997) SOYBEANS: OUTLOOK–The November crop report confirmed a large 2.736 billion bushel crop. Yet, soybeans have bucked the bearish trend exhibited in corn and wheat. Why? Demand is the simple answer; it remains, to say the least, robust. Exports are running at a record pace, and 50% above a year ago. The domestic crush is also running at a record pace. Those of you who have read the column for the past two months know the reason. Basically, since the South Americans are sold out, the world has to come to the U.S. for soybean supplies. Demand should continue strong. Planting delays in Brazil only add fuel to this fire. The bull remains in the soybean box.
STRATEGY–HEDGERS: We closed out all short hedges at profits last month. We continue to suggest maintaining ownership after your sell your cash crop via the purchase of March call options.
TRADERS: We remain long the January futures at an adjusted price of 632 (incorporates our previous November position). Our stop remains at 670 at this time. Leave the upside profit objective open at this time.
George Kleinman
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com