COMMODITY REVIEW AND OUTLOOK

195 Route 6A, Suite 6, Orleans, Massachusetts

(December 18, 1997) CORN: While the yen has improved, Korea made a new purchase of corn–from China. Fears of a slowdown in exports remain. If exports do not improve immediately, look for this rally to fail quickly. The El Nino premium is fast eroding.

RESISTANCE–Resistance basis March is near 272, 275- 277, 281, 285, 288, 295-297, 302-304.

SUPPORT–Support basis March remains near 268, 265.

RECOMMENDATION–The potential remains for a break to the mid-260's or so. Aggressive traders could buy March corn in that area with stops of 3-5 cents, looking for a rally back to the upper 270's, lower 280's, and consider reversing to the short side at that level. Use stops of 3-5 cents or over 285. If March corn takes out 285 it implies a low is in. Longer-term traders and option traders could consider buying May or July calls on weakness for the long pull.

M. Steven Morgan

Consensus National Futures and Financial On Line Index

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