wmeubank@ocp.kcmo.com
ALLENDALE, INC.
4506 Prime Parkway, McHenry, Illinois
(October 20, 1997) WHEAT: World stocks are increasing to 127 mmt versus 108 last year. This huge inventory is keeping prices depressed. Adding to the bearish outlook is an expected increase in U.S. and world wheat acreage. It is expected that by next year, stocks could hit 130 mmt. While beans and corn have enjoyed a recent 90 and 50 cent rally respectively, wheat has only rallied 25 cents. That is not encouraging when the biggest food “mainstay” only budges 25 cents. Yet, support at 363 has held. We bought based on 363 holding, but would reverse to a short if it is taken out. Producers should be sold out and waiting for a level to replace with some call ownership just in case the El Nino strikes here at home.
Bill Biedermann
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