Coffee, Sugar, OJ and cocoa: Yesterday's outside up day in the coffee was very favorable, however the lack of follow through today was not supportive, so while I remain mildly bullish towards coffee, I am not looking for any major sudden moves to develop over the bear term.
Cocoa: This market has a monstrous long fund position hanging over it and a decaying chart picture. As we know cocoa rallies can end with a great deal of suddenness with very large drops. Strength is the US dollar could encourage selling here. The cocoa appears to be very vulnerable to a substantial downside move.
Sugar: Appears to be entering an uptrend and I am looking for higher price to arrive here, but slowly and with fits and starts.
Orange Juice: While the big picture remains generally supportive we may be just a touch ahead of ourselves at these levels and I am looking to buy on breaks.
Livestock: As long as live cattle hold 95.00 basis October I think we can see the bull run continue. Feeder cattle remain at high levels so I am looking for a challenge of the 100 level. The technical picture on the hogs is less friendly and I am looking for a general corrective phase to begin on the downside here.
Grains and Cotton: The story in the wheat continues and the market continues to show amazing strength, and the Kansas City wheat still looks undervalued to me. The corn chart looks terrible, and while the bounces may be severe, this market is going to need some very damaging weather very soon to get the bull back on track, as right now I think any strength we see in the corn will be because of other markets being firm. Soybeans can have some bullish features to them because of lower acreage that was given up to corn. Cotton having survived a fairly steep break could see further gains.
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