wmeubank@ocp.kcmo.com
COMMODITY REVIEW AND OUTLOOK
195 Route 6A, Suite 6, Orleans, Massachusetts
(October 23, 1997) FEEDER CATTLE: SHORT TERM–Feeders are following the live cattle higher, but the potential for higher corn prices longer term is a long-term negative.
RESISTANCE–Resistance basis Nov. remains near 7835, 7950 or so, 8050-8065, 8110.
SUPPORT–Support basis Nov. is near 7760-7780, 7700, 7635, 7615.
RECOMMENDATION–The current chart suggests a low is in place. Aggressive traders could buy Nov. feeders on dips into the mid-upper 7700's with stops under 7740 or 50-100 points. Look for a rally to near 8000. Be alert for problems if corn continues its rally. Option traders could buy calls, as there is the potential for a good move, especially if the corn move stalls out.
M. Steven Morgan
Added to the WWW 10-24-97
Last updated on 10-25-97
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