Soft Commodity Roundup
Oj looks as if it has now stabilized and I will be cautiously entering the long side this week with stops just below 155. Cocoa has found short term resistance and for now I am not going to buy this pullback. In fact puts could be the way to go in the near term.
Coffee continues to struggle with the 100 level. I continue to like the 100-120 spread I mentioned last week but this market needs a rally sometime soon before I put any more on. We need to see a close above 105 before any large traders will pay any attention to coffee again.
Sugar continues to sell off but as I mentioned last week this market remains a strong buy for the longer term. Sugar is a quasi energy contract these days and with Oil making all time highs it is only a matter of time before we see a significant rally in sugar.
Cotton is the most frustrating market I have traded for all of 2006. This market just cannot get it together. I remain long via calls but so far this market has done little more than disappoint.
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