wmeubank@ocp.kcmo.com
ALLENDALE, INC.
4506 Prime Parkway, McHenry, Illinois
(December 12, 1997) WHEAT: USDA lowered the wheat stocks 5 mil. bu. This was not a significant enough change in stocks to get bullish. World stocks are very plentiful and there is potential for even more wheat inventory to build because of the new farm bill as well as world policy. Futures are however well below the cost of production and there is no incentive to sell at current prices. Furthermore, because prices are so low, it is a good incentive for commercials to buy. Thus prices are in good economic value and rather than getting more bearish on down days, we should be getting more bullish. We are trying to buy wheat. It will probably take about 10 times before we really get a good position on. If you are patient, buy some calls now and sell some puts and then just hold.
Bill Biedermann
|
|
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com