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ING DERIVATIVES CLEARING
209 South LaSalle, Chicago, Illinois
(October 3, 1995) WHEAT: DEMAND TROUBLE–As wheat prices approach yearly lows, December wheat has gotten its hands full with Europe competition heating up. As well as Australia. We feel that Europe may have waited a bit in the past for a “just in case” reason: just in case Australia has a drought. Just in case China has a drought/flood. Neither had/has. Therefore, they sat on their hands. Weather conditions just ruined their plans. So, we're now in a sales war. For now, we're holding to our downside objective of the $3.50 area. But as yet, we're not sure we don't need one more push lower as does the corn and beans.
John W. Kleist
Sagamore Partners, Inc.
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