wmeubank@ocp.kcmo.com
BRADFORD & CO., INC.
330 Commerce Street, Nashville, Tennessee
(November 13, 1997) WHEAT: There were no major changes in the Supply-Demand report from October. Feed usage was raised 10 M.B. as well as exports which resulted in ending stocks being lowered to 655 M.B. Global production rose to 534.3 million metric tons and ending stocks increased to 110.7 million metric tons. This is the largest ending stocks figure in nearly four years which implies that wheat prices will lag the other grains. The demand outlook remains static and a dramatic increase is needed to turn prices around. However, the best cure for “cheap prices” is “cheap prices,” but it appears that the market may struggle until sufficient demand develops. Seventy-five percent of the crop is rated in the good-to- excellent category which is no change from the previous week. However, it is difficult to envision that crop conditions can improve much above current levels. Export inspections were disappointing at 16.5 M.B. and below most expectations. December wheat remains oversold but has not given any indication that the decline is complete. Support should develop near the contract low of 335. For now, a rally above 355 is needed to suggest that the sell-off is complete.
Dewey Strickler
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