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