ALLENDALE, INC.

4506 Prime Parkway, McHenry, Illinois

(October 3, 1997) WHEAT: Now that we all know USDA's production estimate will be 2526, demand will be the only question on the next report. Based on the Stocks report, we revised demand to 2395 versus USDA's 2375. Carryover is now estimated at 669 million bushels versus 694. This is slightly supportive. With futures oversold, you can build a case for a rally as stocks are estimated to be smaller and rail car shortages can cause a near-term bump in some cash markets. But long term, we see the train shortage keeping bushels out there which will eventually have to compete with corn, milo, barley, and everything else. World numbers are also bearish unless El Nino wipes an area out. Currently, Australia raised their crop (again) and India had some problems but is apparently improving, Pakistan, Brazil and Argentina do not have a problem yet and who knows what will happen in the America's this winter. Economic value remains negative for now and this rally might be a good opportunity to catch up on some sales.

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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