wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste. 2607, Chicago, Illinois
(December 18, 1997) WHEAT: Wheat futures remained fixed in a very weak state during the past week as recent signs of higher demand went by the wayside. News that many foreign entities that were expected to purchase U.S. supplies turn their business elsewhere sparked heavy pressure. The problem for the U.S. export markets continues to be whether or not countries in the Pacific Rim will buy from the U.S. or from anyone near term after the recent financial debacle that has gripped many countries in that region. Overall, market internals remain fairly weak and without the promise of possible business for the U.S. could be just the fire to push the market down to lows not seen since early July. If the promise comes to fruition look for market activity to improve, especially if the seasonality of the market also makes its presents felt. Technically, March wheat remains in a downtrend; the trend will turn up on a close over $3.54.
FUTURES STRATEGY–Sell WH at $3.49, if filled enter a protective, buy stop at $3.62½.
OPTIONS STRATEGY–No new strategy for now.
Tony Montini
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