wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste. 2607, Chicago, Illinois
(December 4, 1997) SOYBEAN: Activity in the soybean complex during the past week was very weak as pressure stemmed from weaker exports and news that the South American soybean crop could indeed be much better than recently anticipated. As expected, the foreign interest that has supported the market did weaken and the results were not good for price activity as the markets neared two-month lows. The products also suffered as world price are more competitive and therefore, demand has gone elsewhere. The complex also appeared to turn the attention to the growing season starting in the Southern Hemisphere as early planting problems have eased with recent reports indicating 75% to 80% of the crop is in the ground. If the season down south moves into a normal state look for more pressure to filter into the market place. The supply side of the market does not look great with tight supplies behind than market it should focus on the new crop of record proportion and the potential for a larger South American harvest in three to four months. Technically, March soybeans are in a downtrend; the trend would turn back up an a close over $7.12. A close below $6.94½ basis March soybeans would target the market to the $6.39 level.
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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