These articles are brought to you by:
BRADFORD & CO., INC.
330 Commerce Street, Nashville, Tennessee
(August 14, 1997) WHEAT: USDA estimates the total wheat crop at 2.531 B.B. which was 57 M.B. above the average trade estimate. This increase resulted in ending stocks being raised 45 M.B. to 695 M.B. Global wheat production increased 10 million metric tons to 596 million metric tons which resulted in a 4.0 million metric ton increase in ending stocks to 124.0 million metric tons. Although the report was considered bearish to the market, it is likely that wheat will become an attractive alternative to corn in feed rations, especially if corn prices “take off.” Spring wheat harvest is 10 percent complete which is on par with the 5-year average. Export inspections were above trade estimates at 30.0 M.B. while sales were 16 percent below the previous week at 641,700 metric tons. Last week's conmments mentioned to look for a rally to 385 in December wheat before the advance from the July low at 335 was complete. Prices traded at 388 on Tuesday from where the market turned lower. Seasonally, prices should be on the defensive until the end of August. This suggests that a correction to 360 or 355 can be expected with a bottom likely around the 21st, 22nd, or possibly as late as September 2nd. Provided 333 is not broken, the odds favor an advance to 405 or higher longer term.
Dewey Strickler
Added to the WWW 08-15-97
Last updated on 08-15-97
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com
