ALLENDALE, INC.

4506 Prime Parkway, McHenry, Illinois

(October 20, 1997) CORN: Based on Friday's close, we would expect December to decline towards 277. If this holds, then a new round of buying should develop and a rally back towards the 300 is possible. World stocks are 2.5 mmt less than the levels of 1995 when corn rallied to 500/bu. However, there is 20% more wheat, 50% more beans, and much more competitive feed grain. Plus the U.S. pipeline is filling up quickly. Thus we cannot be too bullish. Yet, if there is El Nino problems, the market will explode. We added to shorts today. We will take profit and reverse against support. Producers not sold should buy puts.

Bill Biedermann

Grain and Oilseeds Index
Soybeans
ALLENDALE, INC. | BRADFORD & CO. INC. | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | GLOBAL ASSET MANAGEMENT | MERRILL LYNCH & CO.
PRUDENTIAL SECURITIES, INC. | TAURUS COMMODITIES | THE HIGHTOWER REPORT
Wheat
ALLENDALE, INC. | BRADFORD & CO., INC. | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | GLOBAL ASSET MANAGEMENT
MERRILL LYNCH & CO. | PRUDENTIAL SECURITIES, INC.
Corn
ALLENDALE, INC. | BRADFORD & CO., INC. | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | GLOBAL ASSET MANAGEMENT | MERRILL LYNCH & CO.
PRUDENTIAL SECURITIES, INC. | THE HIGHTOWER REPORT
Consensus National Futures and Financial On Line Index

Added to the WWW 10-24-97
Last updated on 10-25-97

Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com

wmeubank@ocp.kcmo.com