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THE ALLENDALE ADVISORY REPORT
Prepared by Allendale, Inc.
Commodity Wrap-Up For November 24, 1997
Light volume trade ahead of the holidays. Futures started higher based on ideas of follow through buying from Friday's strength and fear that heavy rains in South America could cause further planting delays. Export inspections were bearish for corn and wheat while beans were bullish.
This Week's Odds
Based on a 30-year study of dates, corn trades 3.5 cents higher 47% of the time, and 3 cents lower 53% of the time next week. Beans trade 11.5 cents higher 36% of the time, and 5.25 cents lower 64% of the time. Wheat trades 4.25 cents higher 47% of the time and 6.25 cents lower 53% of the time. Thus if you are bullish wheat, you have slightly greater than 50% chance of getting it bought lower next week. Whereas in beans, the odds are it will rally more than it will sell off, but the odds of the sell off are better. Thus if you want to buy, you should give it a chance to sell off first.
November 24, 1997Allendale, Inc.
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