IRA EPSTEIN & COMPANY

223 West Jackson, 7th Floor, Chicago, Illinois

(October 30, 1997) CORN: On a short-term view December corn appears to be consolidating as prices are having a hard time advancing through the $3.00 level. Stochastic studies look bearish and it appears the market may sell off over the near term. Key support looks to be in the $2.75 to $280 area and if this is broken further price declines could occur.

News this week of Chinese sales of corn to Korea and a lack of confidence of exports to Pacific Rim countries appears to have the market on the defensive for now. Commodity funds appear to be liquidating some long positions and I believe the market is ripe for a short-term correction.

Longer term the market has some near-term bearishness to digest. The overall supply and demand situation should prevent any drastic price declines. As I have said in the past, I believe the market can be supported through the winter months on good demand.

RECOMMENDATION–I would look to buy pullbacks in this market.

Boyd Baker

Grain and Oilseeds Index
Soybeans
BRADFORD & CO. INC. | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | GLOBAL ASSET MANAGEMENT
PRUDENTIAL SECURITIES, INC. | ING DERIVATIVES CLEARING
IRA EPSTEIN & COMPANY | LINNCO FUTURES GROUP
TAURUS COMMODITIES | THE WINDY CITY TRADER
Wheat
BRADFORD & CO., INC. | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | GLOBAL ASSET MANAGEMENT
ING DERIVATIVES CLEARING | PRUDENTIAL SECURITIES, INC.
Corn
BRADFORD & CO., INC. | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | GLOBAL ASSET MANAGEMENT
PRUDENTIAL SECURITIES, INC. | ING DERIVATIVES CLEARING
IRA EPSTEIN & COMPANY | LINNCO FUTURES GROUP
Consensus National Futures and Financial On Line Index

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