ING DERIVATIVES CLEARING

209 South LaSalle, Chicago, Illinois

(October 16, 1997) CATTLE: After a sharp, quick sell off, December cattle futures, a stronger live market providing some support as both are coming in at the $66.00 area. The basic problem with beef (with meats in general) is that the weights are high and so are the kills. We marveled for months juts how good demand was domestically but that changed somewhat. The E- coli deal was a bit negative, but possibly more in the export area than here in the states. So that's not the big problem. What changed was the higher kills and weights running into higher kills and heavier weights of hogs. The market place is flush with meats. Even though there's less cow kills, there's more fed available. And past placements indicate plenty of supplies through at least early December. We have a nominal up seasonal coming in here late October/Early November, then we see one more crunch lower to the low $60's for both live and futures.

John W. Kleist

Commodity Consulting

Hogs
ALLENDALE, INC. | COMMODITY REVIEW AND OUTLOOK
GLOBAL ASSET MANAGEMENT | ING DERIVATIVES CLEARING
Feeder Cattle
COMMODITY REVIEW AND OUTLOOK
Cattle
ALLENDALE, INC. | GLOBAL ASSET MANAGEMENT | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | ING DERIVATIVES CLEARING
TAURUS COMMODITIES | THE WINDY CITY TRADER
Livestock | Consensus National Futures and Financial On Line Index

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