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GLOBAL ASSET MANAGEMENT
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(October 23, 1997) SOYBEANS: Activity in the soybean complex was also very strong based on the same findings in the corn complex, with a lack of farmer selling of new-crop supplies, with very tight carry-over stocks from the previous year. Soybean export inspections were again very strong although there were a lot of cancellations which should ease excitement. The recent USDA report showing a light cut in production also has been a supportive. Despite the reduction the crop will still be of record proportion. Supply side tightness continues to support the market a bit, but remember the market is already facing a crop of record crop proportion and if demand should ease it could create havoc on prices. The U.S. harvest has been steady and the word is that yields are possibly greater than anyone expected and if the later comes to fruition it could mean added pressure in this complex. Technically, November soybeans remain in an uptrend, the trend would turn down on a close below $6.53.
FUTURES STRATEGY–Short SH at $7.10. Maintain a protective buy stop close only at $7.39¼.
OPTIONS STRATEGY–Short SF $7.75 call at $.07. Maintain a protective buy stop at $.19.
Tony Montini
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