ING DERIVATIVES CLEARING

209 South LaSalle, Chicago, Illinois

(October 16, 1997) SOYBEANS: As we sit on top of the $7.00 area in November beans, we can only wonder what would happen if Brazil has a drought courtesy of El Nino come January. Part of the strength obviously demand: one week near- record bean sales and the next, near-record meal sales. Fantastic and front loaded at cheap prices (versus now). But there is no El Nino bean trouble yet in South America (refer last letter “Between El Nino's”) and prices are a buck higher than when we started. Having been (and still are) demand bulls for months ahead of time, we're gratified, but...will we maintain 7.00 November beans basis demand? Not sure. We have a record crop and there's no trouble yet with overseas weather. We have held to the idea of an El Nino “premium” needed but the funds may have gotten the bulls ahead of themselves for a month or two. We won't fight a market, especially beans. For now, all we can say is that $7.00 November beans, we turned from bullish to neutral looking for new move.

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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