wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste 2607, Chicago, Illinois
(October 9, 1997) WHEAT: Wheat futures firmed up a bit during the past week as better demand and a strong rally in other grain markets helped spark a decent gain. Weekly export sales were up 36% from the previous week as sales totaled 819,300 MT with Egypt and Pakistan purchasing large quantities. Despite all of the fanfare many other market factors did keep the market under wraps. News of large U.S. supplies and the Australian Wheat Board upping their production estimate should overtake anymore of a surge in prices. Overall, market internals remain mixed as the fundamentals appear weak, but from a technical standpoint chart action looks like a possible bottom has been made near term, but a close below the $3.60 level would eliminate any ideas of a long-term low being in place. The trend in December wheat remains down and will turn back up on a close over $3.73.
FUTURES STRATEGY–Short WZ at $3.90. Maintain a protective buy stop close only at $4.17.
OPTIONS STRATEGY–Short WZ $3.80 calls at $.10. Maintain a protective buy stop at $.22.
Tony Montini
Added to the WWW 10-10-97
Last updated on 10-12-97
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