wmeubank@ocp.kcmo.com
R.J. O'BRIEN & ASSOCIATES, INC.
555 W. Jackson Blvd., Chicago, Illinois, 60601
(November 13, 1997) WHEAT: ON THE ROAD TO CONTRACT LOWS?–The wheat market has been under the same strain as the corn: demand (marketing year low last week), and the improving global weather and production possibilities. The last USDA report was rather neutral in that there wasn't much of a change. Carryover down 10 mln. bu. on a like amount of increased food use. Exports no change. However, there's also plenty of feed wheat around and lower corn prices adds extra pressure to the market overall. The one good thing price wise we are doing to both the corn and wheat is wresting some control back over the funds and putting prices down to find consumption. For some reason, many thought that corn and wheat was beans. They ain't and there was separation needed as demand had different faces. We've been neutral /negative on the wheat, but it took the reports and the corn to get out of the trading affair. We remain aside.
John W. Kleist
Commodity Consultant
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