ALLENDALE, INC.

4506 Prime Parkway, McHenry, Illinois

(October 10, 1997) WHEAT: USDA lowered ending stocks to 665 mil. bu. versus 694 last month and our estimate of 669. World stocks again increased 127mmt and are now 22 MMT bigger than 1995, 15 mmt bigger than last year. Australia's crop was pegged at 17 mmt by USDA and now estimates of 18 mmt are on the wire! This would add to world stocks further. To put it bluntly, there is no shortage of wheat in the world. Acreage looks like it will increase another 2 ma next year in the U.S. and world production is estimated to increase as GATT keeps policies around the world competitive. Technically, the wheat chart has had a nice rally but hit the long-term down trend and failed Friday. As much as we would like to say buy, the fundamentals and technical picture looks bearish. We would sell rallies.

Bill Biedermann

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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