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GLOBAL ASSET MANAGEMENT
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(October 9, 1997) SOYBEANS: Activity in the soybean complex was also very strong based on the same findings in the corn complex with a lack of farmer selling of new-crop supplies coupled with very tight carryover stocks from the previous year. Soybean export sales were also very strong although the did not near the impressive figure of last week which was over 1 million metric tons. The upcoming USDA release could be very pivotal for price action in the coming months as any increase by the USDA in production could spell an instant turn in the market after the recent gains. Remember the market is already facing a crop of record crop proportion and if demand should ease it could create havoc on prices. The U.S. harvest has been steady and the word is that yields are possibly greater than anyone expected and if the later comes to fruition it could mean added pressure in this complex. Technically, November soybeans remain in a uptrend; the trend would turn down on a close below $6.53.
FUTURES STRATEGY–Sell SX at $6.60 stop. If filled enter a protective buy stop close only at $6.79.
OPTIONS STRATEGY–Sell SF $7.25 call at $.10 or better; enter a protective buy stop at $.23 if filled.
Tony Montini
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