COMMODITY REVIEW AND OUTLOOK

195 Route 6A, Suite 6, Orleans, Massachusetts

(October 10, 1997) WHEAT: SHORT TERM–Fund buying and good exports supported the wheat. A slightly less aggressive stance on the part of the EU's export policy is also positive. Long term I remain friendly and suspect that lows are in.

RESISTANCE–Resistance basis December lies near 363 368, 372-374, 376, 380-384, 389-390, 395.

SUPPORT–Support basis December remains near 355, 350, 348, 342, 335.

RECOMMENDATION–A two-sided approach may be the best way to trade the market. Aggressive traders might consider buying December wheat in the mid-350's with stops under 348 or of 10 or so cents, and/or sell a rally to the upper 360's, lower 370's with stops over 378 or of 5-10 cents. Long-term traders could begin to probe the long side of the market on weakness. Option traders should buy March or May calls for the long pull. Objective is open.

M. Steven Morgan

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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