Coffee, Cocoa, & Sugar: July coffee closed at $2.81 per pound, down 2.7c on concern that the ICE exchange is widening its ability to cancel certain trades during time of extreme price activity. Some clarification of the policy is needed to assure traders that their trades will stand regardless of wide price swings or extraordinary volume. July cocoa closed at $2907 per tonne, down $72 and remains on our no interest list after recent heavy long liquidation as supplies once again available to ports after the recent election problems. July sugar closed at 22.42c per pound, up 60 points on shortcovering but concern over the ICE policy shift could put a damper on further price gains. We continue to favor the long side of sugar but with stop protection.
Cotton: July cotton closed at $1.5561 per pound, down 4 little ticks. Cotton has sold off recently tied to global economic conditions. We would await the Monday USDA crop report before taking any action but we favor the long side tied to the potential damage from the Mississippi delta flooding and possible crop damage.
John L. Caiazzo