wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste. 2607, Chicago, Illinois
(November 13, 1997) SOYBEANS: Activity in the soybean complex during the past week had a firm tone as the market found support on continued rumors of China purchases in the soymeal market along with worries of planting delays in Brazil due to heavy rain. Demand or expected demand continues to give this complex a firm underlying tone, but as of yet China has still not purchased a large quantity of soymeal and, in fact, the export sales figures have trended below the four- week average for the past few weeks possibly indicating that the export demand will weaken for awhile. The supply side of the market does not look all that great either, with tight supplies behind the market it will now focus on the new crop of record crop proportion which could create havoc on prices, especially if demand wanes. Technically, March soybeans remain in an uptrend; the trend would turn down on a close below $7.10.
FUTURES STRATEGY–Sell SH at $7.35 or better; enter a protective buy stop close only at $7.52½.
OPTIONS STRATEGY–Short SF $7.75 call at $0.07; maintain a protective buy stop at $0.19.
Tony Montini
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