wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
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(November 13, 1997) WHEAT: Wheat futures remained fixed in the sideways to lower pattern during the past week as a lack of news kept the market on edge wondering which to trend. Weekly export inspections were again lower, which will probably keep the weekly sales figures near the lows for the year. Australia also indicates that their estimate for the upcoming wheat crop has again been raised now above the USDA figure, which should further worries that world supplies will be plentiful for awhile. The USDA on their recent release also upped their Australian wheat production figure, which is a good sign the crop will be better than expected. Demand seems to be stagnant as recent large purchases have been offshore, which puts to rest rumors of a big Chinese purchase. Technically, March wheat remains in a downtrend; the trend would turn back up on a close over $3.76.
FUTURES STRATEGY–Sell WH at $3.61; if filled enter a protective buy stop close only at $3.75¾.
OPTIONS STRATEGY–Short WZ $3.80 calls at $0.10; maintain a protective buy stop at $0.22.
Tony Montini
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