ING DERIVATIVES CLEARING

209 South LaSalle, Chicago, Illinois

(October 16, 1997) CORN: It's been a busy couple weeks with the friendly USDA reports and the funds buying zillions of bushels of grains and oilseeds. Now that we've calmed down a bit, we should take a look at where we are. And basically we're right under the 3.00 mark in the December corn. Can we keep it? Tough question. The carryover numbers and projected USDA demand suggests we can but the nearby numbers are disappointing. To wit, export sales fell to the 400,000 M/T area and visible export business isn't that robust at all. China interesting as their grain crop in general grows (They had a heavy carryover and ditched some corn acres. No surprise. And replaced a lot of that “lost” production with wheat.) as does their corn exports. Forty cents ago they said they would stop selling corn because the price was too low. Now they are selling corn again. The market just hates to believe it, preferring it's a grand bull market maneuver. Whatever, they are not importing U.S. corn for a while. Otherwise, except for the funds, it's been quiet. We feel that December corn over the 2.90 mark under current conditions a bit too pricey for demand and look for the market to work down to 2.75 in the near term.

John W. Kleist

Commodity Consultant

Grain and Oilseeds Index
Soybeans
ALLENDALE, INC. | BRADFORD & CO. INC.
COMMODITY REVIEW AND OUTLOOK | COMMODITY RESOURCE CORPORATION
GLOBAL ASSET MANAGEMENT | ING DERIVATIVES CLEARING | PRUDENTIAL SECURITIES, INC.
TAURUS COMMODITIES | THE WINDY CITY TRADER
Wheat
ALLENDALE, INC. | BRADFORD & CO., INC.
COMMODITY REVIEW AND OUTLOOK | COMMODITY RESOURCE CORPORATION
GLOBAL ASSET MANAGEMENT | ING DERIVATIVES CLEARING | PRUDENTIAL SECURITIES, INC.
Corn
ALLENDALE, INC. | BRADFORD & CO., INC.
COMMODITY REVIEW AND OUTLOOK | COMMODITY RESOURCE CORPORATION
GLOBAL ASSET MANAGEMENT
ING DERIVATIVES CLEARING | IRA EPSTEIN & COMPANY | PRUDENTIAL SECURITIES, INC.
Consensus National Futures and Financial On Line Index

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