COMMODITY REVIEW AND OUTLOOK

195 Route 6A, Suite 6, Orleans, Massachusetts

(October 16, 1997) WHEAT: SHORT TERM–Fund buying and carryover buying from corn and beans are supporting the wheat. Growing weather is excellent. Wheat is cheap relative to beans and corn, so if they continue to work their way higher, wheat should move with them. Long term I remain friendly and suspect that lows are in.

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

SUPPORT–Support basis December remains near 363 368, 355, 350, 348, 342, 335.

RECOMMENDATION–A two-sided approach may be the best way to trade the market for now. Aggressive traders might sell this rally to the upper 360's, lower 370's with stops over 378 or of 5-10 cents, and/or consider buying December wheat in the mid-upper 350's with stops under 348 or of 10 or so cents. Long-term traders could begin to probe the long side of the market on declines to the low 360's. 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 | 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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