Potential collapse of euro weighs heavy on stocks

Coffee, Sugar and Cocoa: March coffee closed at $2.3255 per pound, down 2.85c after recent strength prompted by Colombia downgrading output estimates and on concern over La Nina weather patterns. We prefer the sidelines for now. March cocoa closed at $2380 per tonne, down $24 in sideways trading. Reports of an Ivory Coast state controlled cocoa body which had prompted selling may have been an extreme reaction. We continue to favor the sidelines however. Our preference would be for the long side but only for well capitalized accounts. March sugar clowsed at 22.9c per pound, down 19 points and remains on our "bearish sentiment" list.

Cotton: March cotton closed at 90.06c per pound, down 85 points on continued selling pressure tied to possible economic problems in China, a usual buyer. We prefer the sidelines until some further clarification of supplies, demand, and the global economic situation.

John L. Caiazzo
Website:
www.acuvest.com

E-mail: futures@acuvest.com

About the Author
John L. Caiazzo

Website: www.acuvest.com

E-mail: futures@acuvest.com

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.

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