OJ managed a very strong rally just as we begin Hurricane season here in Florida. This market could find its way above 2.00 before the end of this year’s hurricane season if the groves are hit. Longer term call trades in this market are the best form of Hurricane “insurance” any citrus farmer can have.
Cocoa failed to follow through again. This market will just not follow through in either direction no matter what happens it seems. For now we are nearing the lower end of the range and therefore I would favor the long side but only slightly.
Coffee did confirm the downward trend I predicted last week and for now this market is a sell, but longer term I would begin to look at the long side once we slide below 95. Sugar continued to struggle but did manage to so far hold support. We may “shakeout” more early this week but I do expect a turn back towards higher prices in the very near future. Cotton was in fact a head fake as expected and we are now poised to run back above 53 this coming week.
by Derek Frey
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