THE WINDY CITY TRADER

P.O. Box 1673, Chicago, Illinois

(October 14, 1997) CATTLE: The live cattle market is trying to rebound somewhat. We do not feel that this is the beginning of any serious move up, however. The seasonal buys are pushing the market short-term, but this rally will be weak and short lived. There are nearly 20% more cattle on the feedlots right now at a time when demand is below average, at best. We hope the December futures can test up to old highs near 6850. It should be a wonderful short sale there. Feeders will take their cue from corn right now. As corn prices rally, cattle are rushed off of the feed lots to market to avoid high feed costs. This influx of product can cause sharp drops in price very quickly. Hog supplies are only marginally above last year, so the recent large drop in price can be attributed to slow demand. December could see a 2-3 cent correction rally back toward 6400 near term.

Stephen Connell and William Frejlich

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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