wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste. 2607, Chicago, Illinois
(November 26, 1997) SOYBEANS: Activity in the soybean complex during the past week was steady to a touch better as decent export sales and strong activity in the product sector supported prices. The complex continued to find underlying support from foreign interest, although activity has subsided from the strong pace a couple of weeks ago. The products continue to lead the sector as strong prices world wide have kept the markets from posting any large breaks. Despite recent strong demand, the complex should now fix its attention on the growing season starting in the Southern Hemisphere as early planted problems have eased, with recent reports indicated 50% to 60% of the crop is in the ground. If the season down south moves into a normal state, look for pressure to become a strong factor on prices. The supply side of the market does not look great with tight supplies behind the market, it should focus on the new crop of record proportion, which should pressure price further, especially if demand starts to decline. Technically, March soybeans remain in an uptrend; the trend would turn down on a close below $7.10.
FUTURES STRATEGY–Short SH at $7.35. Maintain a protective buy stop close only at $7.52½.
OPTIONS STRATEGY–Short SF $7.75, call at $.07. Maintain a protective buy stop at $.19.
Tony Montini
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