ALLENDALE, INC.

4506 Prime Parkway, McHenry, Illinois

(October 3, 1997) SOYBEANS: USDA should raise the crop to 2760 versus 2745 million bushels. They should raise ending stocks to 307 versus 285 last month...almost 3 times the levels of stocks we had this year (assuming we can maintain record demand). Economic value for a crop this size is 570. Technically, today's rally was very impressive and today's high challenged the down trend line resistance. If the market fails from today's high, then our 570 objective remains intact. If however, the downtrend line is taken out, then the market might be bottoming. With ideal U.S. yields and bigger acres in South America, we expect further downside pressure. But it is worth noting that El Nino is in the news every day. Traders will buy if they think South America is turning dry.

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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