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THE WINDY CITY TRADER
P.O. Box 1673, Chicago, Illinois
(September 30, 1997) SOYBEANS: The weather in the Midwest has been outstanding. This is causing the recent weakness in beans and corn. The next seven days look equally nice with lows around 50 and highs near 70 with little moisture. This continues to relieve the frost fears as well as allowing harvest to proceed ahead of schedule. We expect another few days of weakness, then expect the market to stabilize before rallying. The demand for bean products continues to be excellent. The beans should hit cycle lows around the first week in October. The nice weather continues to pressure the corn. Funds remain long (a positive factor) so we do expect the market to hold good support near $2.54 basis December. Wheat has been hurt by beneficial rains in Australia. The last month saw much needed rainfall to key wheat growing areas there. This caused their crop estimates to be raised from 15 million to 17 million tons. On the export front, Egypt purchased 200,000 metric tons from France this past weekend. Also Pakistan purchased 200,00 tons from the U.S. and over 500,000 tons from Australia and Canada. While it may be construed as bearish to U.S. wheat, any big pick-up in demand could have a long-term bullish effect on this market.
Stephen Connell and William Frejlich
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