wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste. 2607, Chicago, Illinois
(December 4, 1997) WHEAT: Wheat futures remained fixed in a sideways to lower pattern during the past week, but signs of higher demand did keep the market from making new lows. The one thing that has become apparent during the last price break is possible export activity as many foreign buyers have shown interest which could be the start of a decent rally if interest 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 U.S. and world prices moving in-line it could spark interest for U.S. supply. Overall, market internals are mixed to 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–Long WH at $3.60. Enter a protective sell stop at $3.47½.
OPTIONS STRATEGY–No new strategy for now.
Tony Montini
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