ALLENDALE, INC.

4506 Prime Parkway, McHenry, Illinois

(October 3, 1997) CORN: Corn harvest is just getting started in the Corn Belt. Based on reports so far, ALDL studies suggest 9384 million bushels versus USDA 9267. Economic value for the second largest crop remains in the 230/220 area. Technically, Friday's rally took out some resistance and moved higher than we expected. But the down trend line remains in tact. The current formation head and shoulder top projects a move to 244 and there is a gap at 253 and 238. We expect rallies will fail and would sell at 268 or 262 on a stop. If you do not want to sell futures, then buy March 270 puts and sell the 280 call. If you want to buy, we would wait to buy until the USDA report or the chart gives a major buying signal.

Bill Biedermann

Grain and Oilseeds Index
Soybeans
ALLENDALE, INC. | BRADFORD & CO. INC. | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | GLOBAL ASSET MANAGEMENT | MERRILL LYNCH & CO.
PRUDENTIAL SECURITIES, INC. | TAURUS COMMODITIES
Wheat
ALLENDALE, INC. | BRADFORD & CO., INC. | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | GLOBAL ASSET MANAGEMENT
MERRILL LYNCH & CO. | PRUDENTIAL SECURITIES, INC.
Corn
ALLENDALE, INC. | BRADFORD & CO., INC. | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | GLOBAL ASSET MANAGEMENT
MERRILL LYNCH & CO. | PRUDENTIAL SECURITIES, INC.
Consensus National Futures and Financial On Line Index

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