Following the breath taking bounce in equities, coffee is up, cocoa down, and cotton little changed. Sugar so far seems to have held up against a wave of pressure and OJ is sharply higher as yields were reportedly lower. At any rate, the mixed response is indicative of uncertainty and while stocks continue to advance there likely will be more of a technical play among the softs until some fundamental evidence becomes clear.
Coffee needs to prove itself capable of staying over 13585 basis July, but with June options going off the board on friday it is indeed possible that we may see a rush to a strike price, maybe 140, or maybe 135? Who knows?
Now that OJ has put in the best upside move seen in a while, I am hearing there are reports that it may be due to Brazil’s crop being reduced.
I cannot help but wonder if sugar can now form a base from which to attempt advancement, so far so good as it weathered a lot of stress.
Cannot think cocoa is finished moving down. Specs have pushed that market up. Grindings were higher in anticipation of higher demand, but that demand is questionable.
