Coffee, Cocoa and Sugar: May coffee closed at $2.78 per pound, up 1.8c tied to a disappointing Mexican harvest but higher exports from Latin American countries could bring in selling early in the week. We prefer the sidelines. May cocoa closed at $3103 per tonne, down $24 and is on our no interest list. Geopolitical events especially related to Ivory Coast keep us on the sidelines in cocoa. May sugar closed at 27.68c per pound, down 3 little ticks. Japans import demand could decline sharply thanks to the earthquake damage to some of its ports so we could see additional long liquidation this coming week. We prefer the sidelines here as well until actual supply/demand information becomes available.
Cotton: May cotton closed at $1.9912 per pound, up 7c on new buying and tight supplies. However with what we had seen of hoarding in expectation of still higher prices, we could see a new round of long liquidation as prices stabilize or decline. We would buy put options on July cotton.
John L. Caiazzo
Information provided is from sources deemed to be reliable but not guaranteed. Futures and Options trading involve a high degree of risk and may not be suitable for everyone. John Caiazzo is a registered commodities broker with over 40 years experience in investments and opinions are his own and not of the Futures Commission Merchant to which he introduces his clients.