wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste. 2607, Chicago, Illinois
(November 26, 1997) WHEAT: Wheat futures remained fixed in the sideways to lower pattern during the past week as the market seem to be lifeless. The one thing that did become apparent on this most recent price break, was possible export activity as many foreign venues started to show some interest, which could be the start of a decent rally if looking turns into buying. The problem for the U.S. export markets will be whether or not countries in the Pacific Rim will buy from the U.S. or the new Australian crop, but with world prices moving in-line it could spark interest for U.S. supply. Overall, market internals are fairly weak, but the promise for possible business could be the light at the end of the tunnel and a turn for the better. If the promise comes to fruition look for market activity to improve, especially if the seasonality of the market also makes its presence felt. Technically, March wheat remains in a downtrend; the trend will turn up on a close over $3.70.
FUTURES STRATEGY–Short WH at $3.61. Buy two contracts on a reversing stop at $3.59. If market is above the price, just reverse at market.
OPTIONS STRATEGY–Cancel selling WH $3.70 calls at $.07. No new strategy for now.
Tony Montini
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